White House Quietly Increases Budget for Obamacare's Exchange Subsidies by $111 Billion
WASHINGTON - JULY 13:
Pharma & Healthcare
I’ve written extensively about how the most fiscally dangerous aspect of Obamacare is its creation of a new entitlement for subsidized private insurance, through the law’s state-based exchanges. If employers dump many of their workers onto the exchanges, as numerous independent analyses suggest is likely, taxpayers may need to spend as much as $200 billion a year extra on these exchange subsidies. Well, it turns out that the Obama Administration agrees that initial spending estimates are too low. The White House’s fiscal year 2013 budget adds $111 billion in exchange spending between 2014 and 2021, with even more spending to come in future years.
Below is a comparison of a section of Table 33-1, “Federal Programs by Agency and Account,” in the White House Office of Management and Budget’s fiscal year 2012 and 2013 budgets. (If you want to look it up yourself, go to the “refundable premium assistance tax credit” entry on pages 322 and 315 of the FY 2012 and FY 2013 budgets, respectively.) You can click on the table to enlarge it: