Good news everybody — the CBO projects Obamacare Exchange subsidy costs to be lower than previously projected.
Obamacare’s most expensive provisions will cost about $9 billion less than expected, according to the latest estimates from the Congressional Budget Office.
Bad news everybody —
Most of the cost savings being projected are due to fewer people enrolling and receiving subsidies in the first three years.
About 6 million people will probably enroll in private insurance coverage through Obamacare this year, the Congressional Budget Office said today.
CBO had initially projected that 7 million people would sign up for coverage in the first year, but it rolled back those expectations “in light of technical problems” that plagued HealthCare.gov and certain state exchanges when they launched.
Decent news everybody —
The CBO’s February enrollment projections basically assumed that the October and November clusterfuck can be written off as a one time event. People who would enroll in the out-years in the pre-October projections would still be enrolling in the out years, and the people who got scared away from enrolling this year will enroll next year.
But the website clusterfuck will have significant and real costs as over a million people who otherwise probably would have insuranace in 2014 won’t.