The recent Supreme Court ruling on the Patient Protection and Affordable Care Act of 2010 (PPACA) could reduce total PPACA insurance coverage provision spending by 6.7%, to a total of $1.2 trillion from 2012 to 2022.
The court ruling should cut PPACA insurance provision implementation costs by about $84 billion, officials at the Congressional Budget Office (CBO) say in a commentary summarizing PPACA ruling impact estimates made by analysts at the CBO and the congressional Joint Committee on Taxation (JCT).
The CBO is a congressional research unit that analyzes budget issues.
The JCT is a congressional research unit that looks at tax issues.
The Supreme Court ruled June 28 only that Congress has the authority to impose taxes on individuals who fail to own a minimum level of health insurance and to use offers of additional Medicaid funding to encourage states to expand Medicaid program eligibility.
The court ruled Congress did not have the authority to take away existing Medicaid funding to prod states to expand Medicaid eligibility.
The court has not yet ruled on other challenges to the validity of PPACA.
The CBO and JCT analysts looked only at the budget effects of PPACA health insurance provisions, such as the Medicaid expansion provisions, the tax on individuals who fail to meet PPACA health insurance coverage requirements, and provisions that would create new health insurance exchanges, or Web-based health insurance supermarkets.