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.

By Aimee Picchi Jul 31, 2013 12:18PM

Insurance Money (© Comstock Images, Jupiterimages)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.

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Jul 31, 2013 1:02PM
Either way, the American people are getting S C R E W E D  unless you are on welfare or an illegal...then you got it made!!  Hey, Prez jackass, lock me up because I WILL NOT BE FORCED TO BUY SOMETHING I CANNOT AFFORD...I don't make enough to afford it but make too much for the subsidy....S C R E W E D
Jul 31, 2013 1:12PM

Cost 12 billion dollars because you were counting on the fines to business owners?

This is madness

Obamacare reminds me of Howard Hughes' plane the Spruce Goose, too heavy to actually get off the ground for any decent length of time and therefore no good to anyone only to soon be put on the shelf next to other historic failures.
Jul 31, 2013 1:02PM
It will always be UNAFORDABLE to most people unless you are on welfare. Also fat people watch out, there are large monetary  penalties for being grossly overweight in Obamacare.
Jul 31, 2013 1:05PM
Just curious....can Odumbo do anything right?   What a POS POTUS.....worst in history !!
Jul 31, 2013 1:27PM
Strange... it "costs" the government $12 billion in uncollected fees and penalties.  Unreceived/uncollected money is not a cost, just not in income.  Costs are money spent.

Now, it would have cost the many affected business $12 billion in fees and penalties.  And that is a cost they would have had to pass on to their customers, ultimately affect all of us consumers.

I'm tired of the governments "accounting" system.
Jul 31, 2013 1:06PM

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.

Jul 31, 2013 1:19PM
ObamaCare will be repealed as soon as all the so-called 'pork' has been doled out to Obama's constituents. This bill was never about insuring the uninsured or cutting healthcare costs for middle class Americans. It was a cash grab shrouded in the hedges of alot of legal double-speak. Go ahead and read it. You will see what I mean. Are we really thinking anyone on the Hill or in the White House is in our corner? Politics is, inherently, corrupt, is designed to be and always has been. You need money to campaign. You make promises. You get campaign dollars. The empowered cash in on those promises when their guy gets into office. It's not brain surgery. And what the heck is 'the electoral college'? Make the results of a popular vote the deciding factor so you can, at least, sell people on the ideology that "every vote counts" We know 'every vote' doesn't count. Like 1776 there will need to be a full scale revolution for anything to get done and is that really even plausible? It will be genocide. People in the armed forces defending the politicians against the angry mob because they took an oath. Everything that comes out of Washington DC is all rhetoric, smoke and mirrors, and posturing. No one cares about the people. We are living in very dark times.  
Jul 31, 2013 1:17PM

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

Jul 31, 2013 1:26PM

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! 

Jul 31, 2013 1:27PM
More taxes and less service, welcome to government run programs.
Jul 31, 2013 1:16PM
Careful about criticizing the government....big brother is watching.....
Jul 31, 2013 1:17PM

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.

Jul 31, 2013 1:23PM
nothing that comes from our government is affordable. in the past 12 months my insurance has doubled. just got the note from blue cross a 35% increase  I am dropping it and will pay the fine if they catch me 
Jul 31, 2013 1:33PM
It is all about the 2014 mid term elections...if the people found out how bad obamacare works and the costs next year as planned....the democrats would be voted out of office......hopefully along with some republicans..
Jul 31, 2013 1:23PM
This Monkey intercourseing debacle has and continues be one of the biggest screw-ups ever to cross the desk of a setting POTUS..... Even after it passed the house and senate we still don't know all of what's in it or what it will cost us over time. Nancy Pelosi was right about that....only thing she has ever been right about! 
Jul 31, 2013 1:20PM
free health insurance for folks who don't make enough salary (losers. druggies, lazy, poor work ethic, welfare moms, etc.) will just mean dozens of "pain clinics" will be opening up on every street corner.
Jul 31, 2013 1:31PM
If you would switch the B and F then I would like to say  "BUCK OFAMACARE"  what a disaster the law is , almost as bad as the person who signed it
Jul 31, 2013 1:10PM
wrong wrong wrong.   There should NO delay.  There has been plenty of time and warning.  I suggest when those working without insurance drops by the local hospital that the social worker comes in for their sign up and payment of National Healthcare Insurance  AND BILL PAYMENT ARRANGEMENT for service at the ER.  EVERYONE MUST BE ON THE SAME PLAN INCLUDING OUR PAID SERVANTS making rules and laws.
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