Millions less than initially expected will purchase health care through the Affordable Care Act, a.k.a. Obamacare, in 2016, the Congressional Budget Office (CBO) predicted in a new report released Monday.
The CBO expects only 13 million people to buy health care through the Affordable Care Act marketplace in 2016, about a 40 percent decline from the 20 million the agency estimated last year.
The estimate was downgraded partially because more people will be ineligible for subsidies and will decide to buy insurance directly from the insurer rather than obtain a plan through Obamacare. "Most of the unsubsidized people who are no longer expected to purchase insurance through an exchange are expected to purchase insurance directly from an insurer instead," the report said.
While the CBO predicted fewer Obamacare customers, the agency also estimates that more people will be eligible to receive subsidies - 11 million people, compared to 8 million people who received taxpayer assistance in 2015. That increase will cost $18 billion more in 2016, bringing the total to $56 billion, which is expected to double within a decade, according to The Hill.
"CBO and the staff of the Joint Committee on Taxation (JCT) estimate that about 11 million people will receive exchange subsidies, on average, during calendar year 2016, compared with an average of 8 million in 2015," the report says. "Additionally, the agencies project that about 2 million other people will purchase coverage through an exchange but will not be eligible for subsidies - for a total of 13 million people, on average, enrolled in policies purchased through exchanges."
Mandatory outlays are also expected to increase by $168 from fiscal year 2015, CBO said, citing spending increases on entitlements. Spending on Social Security will increase by three percent, while spending on Medicaid, Medicare, Children's Health Insurance Program and Obamacare subsidies will rise by 11 percent, or $104 billion, according to The Daily Caller.
The Senate Budget Committee was supposed to hold a hearing on the report Tuesday, but the meeting has been postponed until further notice due to the blizzard.
The administration could also decide to push back the Jan. 31 deadline for Obamacare enrollment because of the snow, according to The Washington Examiner.
