Obamacare could pay out nearly $1 trillion in subsidies and another nearly $1 trillion for the Medicaid expansion over the next decade if the law remains in place, according to a new projection from the Congressional Budget Office.
The nonpartisan CBO released a report Tuesday detailing the budget outlook for 2017 to 2027. A part of that outlook examined the increases in federal subsidies for paying down the cost of insurance for Obamacare customers and the cost of the law’s Medicaid expansion.
The CBO estimated that for 2017, the federal government would pay out $49 billion for Obamacare exchange subsidies. That number is expected to rise by an annual rate of 9 percent each year, and reach $110 billion in 2027.
“For the 2018-2027 period, the net subsidy is projected to total $919 billion under current law,” the report said.
The tax subsidies rise with any hikes in premiums. Rates for the second cheapest Obamacare plan in the silver tier rose by an average of 22 percent, the federal government previously reported.
The rise in rates meant that the federal government would fork over an estimated $10 billion more in premium subsidies this year compared to 2016.
CBO also projected more people signing up under the law’s Medicaid expansion. The office estimated that about 12 million people have health insurance in a given month this year due to the expansion. It projected that number to swell to 17 million in 2027 if Obamacare remains in place.
CBO estimates that over the next decade spending on people covered under the expansion will result in $998 billion.
CBO projected that 10 million people will have insurance purchased through Obamacare’s marketplaces, which are on the individual market intended for people who don’t get insurance through work.
A previous CBO estimate came up with the 10 million figure, and the agency projects that it will rise to 13 million people by 2027.
The new estimate comes as Congress is debating killing the law. Congressional committees are starting work on repeal legislation that can be passed in the Senate by a simple 51-vote majority.
