Obamacare delay to cost $12 billion
Giving employers an additional year to meet the law will add billions to its price and leave 500,000 uninsured.
The Affordable Care Act just got a little less affordable.
The decision by the Obama administration to delay the employer mandate to provide health insurance to full-time employees will add to the overhaul's cost, according to a new study from the Congressional Budget Office and the Joint Committee on Taxation.
The study, requested by Rep. Paul Ryan, R-Wis., found that the cost of Obamacare will mount by $12 billion, largely because of a reduction in penalties paid by employers that would have been collected if the delay hadn't been enacted.
With the delay, the ACA will cost the government $1.375 trillion over 10 years, or about $12 billion more than the CBO's May 2013 estimate. About $10 billion of the difference is related to a reduction in employer penalties, and the remainder is tied to higher costs from exchange subsidies, the study found.
Aside from the dollar impact, the delay will also hamper Obamacare's goal of providing health insurance to all Americans. About 1 million fewer workers will be enrolled through their employers than the CBO had previously estimated, the study notes.
While about half of those people will buy insurance on health care exchanges, about 500,000 of them will go without coverage, the CBO estimates.
Ryan has been a vocal opponent of the health care overhaul, noting in a July 17 statement that he believed the delay was a "step toward a full repeal."
Nevertheless, states are moving forward with their health care exchanges. Enroll America started a marketing push to convince the uninsured to sign up starting on Oct. 1. Enroll America describes itself as a nonpartisan coalition of medical professionals, insurers, civic organizations and employers, among others.
But some employers are balking at the requirement to provide health insurance, delay or no delay. Wendy's (WEN), Regal Entertainment Group (RGC) and Darden Restaurants (DRI) are among the companies either mulling or already planning cutbacks in workers' hours as a way to avoid the requirement.
Follow Aimee Picchi on Twitter at @aimeepicchi.
Cost 12 billion dollars because you were counting on the fines to business owners?
This is madness
prrof that obama doesnt care about working americans. it was obama who delayed the implementation of the law for the sole fact of helping rich greedy corporations. its big business who is being helped and that is who obama really cares about.
obama has a war on the working class of this country.
If we could only get rid of Obama. worst make believe president ever in this nation but problem is we might never really recover fully form his insane politics. just pray he leaves office soon
impeach and imprison
For the longest time, the middle class has suffered tax burdens. Now, employees are faced with working fewer hours (while earning less) so their employers can bypass the ACA mandate. No matter how you spin the bottle, America gets screwed.
I think all working Americans should strike and demand a government that is structured for the taxpayers and not the politicians. This IS enough!
Americans are not entitled to health insurance, or free insurance.
The problem is the unethical medical practices in the states. Do you know it's cheaper for people on blue cross insurance to go to Mexico and pay full price down there? Why are medical services and drugs cheaper across the border? Because of some real shady deals going on up here.
Put laws in place to force doctors and drug companies in US to charge the same as they do in all countries and lower income will not need to buy medical insurance, as doctors visits and medicine will be affordable.
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More than 70 percent of the Class of 2012 took out loans. Oh, and they're seeing high unemployment, too.
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