Federal Medicaid costs will accelerate more quickly than previously expected under the 2010 healthcare overhaul, according to Richard Foster, the CMS' chief actuary.
CMS sees Medicaid costs outpace projections
New estimates of federal healthcare spending, requested by Senate Republicans, found that growing federal Medicaid spending since enactment of the Patient Protection and Affordable Care Act has increased estimates of future federal Medicaid spending from $410.3 billion between 2010 and 2019 to $725.3 billion between 2010 and 2021.
“This analysis highlights the fiscal uncertainty involved with the law and its threat on our economic future,” Sen. Orrin Hatch (R-Utah) said in a written statement about the report that he requested along with Sen. John Cornyn (R-Texas).
The actuary also was asked to analyze a series of possible scenarios and their costs by the senators and concluded that if 50% of employers dropped insurance coverage then the cost of subsidizing employees would jump from $593.3 billion under previous assumptions to $823 billion through 2021.
Those employee insurance exchange subsidy and Medicaid expansion costs would drive the cost of the law as high as $1.56 trillion through 2021, according to the actuary. Previous estimates had concluded that the first 10-year cost of the measure was less than $1 trillion.
Send us a letter