Friday, March 2, 2012

The Cost of Obamacare Just Jumped by $111 Billion

The scariest thing about this jump is that Obamacare isn't even in full effect yet!:

Ways and Means Committee Chairman Dave Camp (R-Mich.) is asking about a spike in the estimated costs of subsidies to help people buy private insurance — a central, and expensive, component of the new healthcare law.

The administration's budget request this year included $111 billion more for subsidies than its request last year. The difference falls across the same seven-year window.

"This staggering increase in health insurance exchange subsidy spending cannot be explained by legislative changes or new economic assumptions, and therefore must reflect substantial changes in underlying assumptions regarding the program's utilization and cost," Camp wrote Friday in a letter to Treasury Secretary Timothy Geithner.


Camp's letter cites Congressional Budget Office scores of two bills that passed since the White House submitted its last budget. Together, the bills were expected to cut the cost of exchange subsidies by about $9 billion, he said, making the White House's projected increase all the more surprising.

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