The Obama administration’s recent announcements and final rules regarding the implementation of the healthcare law—including a one-year delay of the healthcare reform law’s employer mandate—is estimated to increase the law's net cost to the federal government by $12 billion over 10 years, the nonpartisan Congressional Budget Office and Joint Committee on Taxation announced Tuesday. A relatively modest cost increase was predicted when the mandate delay was announced.
House Budget Committee Chairman Paul Ryan (R-Wis.) had requested that the CBO and JCT assess the effects of the July decision to postpone for one year the law’s provision that large employers provide insurance to their workers or pay a penalty, as well as the corresponding delay in two reporting requirements under the law. In a six-page report, the CBO noted that its May 2013 baseline projections had estimated the Patient Protection and Affordable Care Act’s insurance provisions would cost the federal government about $1.36 billion between 2014 and 2023. After the Treasury department’s recent announcement, the CBO recalculated those projections and now estimates the insurance coverage measures in the law will cost the federal government about $1.375 billion over that same 10-year period.