ObamaCare Could Cost an Extra $1 Trillion

Many people have worried that employers would dump their workers into the subsidized exchanges. Now there is good reason for states to dump Medicaid beneficiaries there at the expense of the federal taxpayer

How big could it be?…Suppose that every state takes advantage of this opportunity, and that every individual who is either on Medicaid or would be eligible for the expansion actually moves to the exchanges. The federal government would save as much as $130 billion in Medicaid in 2014, but it would be on the hook for $230 billion in new insurance subsidies. The net bottom line: a $100 billion annual expansion in federal costs.

Source: American Action Forum.

Comments (5)

Trackback URL | Comments RSS Feed

  1. Alex says:

    One more reason why this is not the reform that we need.

  2. Otis says:

    Ceteris paribus of course. There is no telling what other factors could make that number go even higher. Inflation, for one.

  3. Ken says:


  4. Devon Herrick says:

    I agree the cost will be far higher than the CBO has estimated. The CBO assumes most people will continue to receive health benefits at work. My analysis shows that the subsidy for families purchasing coverage in the Exchange will often be three, four — even six times greater than families would get through work. Over time individuals will migrate to jobs that allow them to obtain more generous subsidies in the exchange. Also over time, employers that can do so will find ways of dumping their moderate-income workers into the exchange.

  5. Ambrose Lee says:

    I’m curious to see how many states actually make their principled stand in rejecting fully comped Medicaid funding.