Federal Medicaid costs will rise more quickly than previously expected under the 2010 healthcare overhaul, according to Richard Foster, the CMS' chief actuary. New estimates, requested by Senate Republicans, found that growing federal Medicaid spending since enactment of the Patient Protection and Affordable Care Act has increased estimates of the government's future obligation from $410.3 billion between 2010 and 2019 to $725.3 billion between 2010 and 2021.
Late News: Medicaid spending rising more quickly: CMS actuary
“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 he requested along with Sen. John Cornyn (R-Texas). Foster also concluded that if 50% of employers dropped insurance coverage, the cost of subsidizing those employees' coverage through the forthcoming insurance exchanges would jump to $823 billion through 2021, compared with the previously estimated $593.3 billion. Those scenarios together could drive the cost of the law as high as $1.56 trillion through 2021, according to the actuary. Previous estimates put the first 10-year cost of the measure at less than $1 trillion.
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