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Health care industry

Unfunded Costs of Health Care Reform Law Could Exceed $115 Billion

Strategic Insights

— 2 min read

U.S. Senator Thad Cochran (R-Miss.) has expressed concerns that unfunded costs for implementing and paying for the nation's new health care reform law will put new pressure on the federal budget. In a letter to Cochran, the Congressional Budget Office (CBO) estimated that Congress would have to provide more than $115 billion in additional discretionary spending over the next 10 years to implement and pay for programs authorized by the law. This figure is on top of the nearly $1 trillion price tag on the original bill, and does not include costs for programs authorized in the bill to be funded with "such sums as may be necessary."

Key Takeaways:

  • The Congressional Budget Office (CBO) estimated that Congress would have to provide more than $115 billion in additional discretionary spending over the next 10 years to implement and pay for programs authorized by the health care reform law.
  • This figure is on top of the nearly $1 trillion price tag on the original bill.
  • The CBO estimated that total authorized costs to implement the health care reform law and to pay for authorized grant and other discretionary program spending would probably exceed $115 billion over the 2010-2019 period.
  • The CBO did not offer cost estimates associated with 50 programs without specific funding authorizations.
  • Implementation costs for the Internal Revenue Service and Department of Health and Human Services are estimated to range between $10 billion and $20 billion over 10 years.
  • In mid-March, the CBO initially estimated additional discretionary costs associated with the health care reform bill would be about $100 million.
  • U.S. Senator Thad Cochran (R-Miss.) has expressed concerns that unfunded costs for implementing and paying for the health care reform law will put new pressure on Congress and the federal budget.
  • Cochran stated that finding the extra money to implement the health care reform law will "add tremendous pressure" on Congress and the federal budget.

Statistics:

  • $115 billion: estimated additional discretionary spending required to implement and pay for programs authorized by the health care reform law.
  • $1 trillion: price tag on the original health care reform bill.
  • 10 years: timeframe for estimated additional discretionary spending.
  • 50 programs: CBO did not offer cost estimates associated with these programs.
  • $10 billion-$20 billion: estimated implementation costs for the Internal Revenue Service and Department of Health and Human Services.
  • $100 million: initial estimate of additional discretionary costs associated with the health care reform bill by the CBO in mid-March.
  • 2010-2019: timeframe for estimated total authorized costs to implement the health care reform law.

Sources:

  • "Letter to Thad Cochran from Congressional Budget Office" (no date)
  • "Cochran: Health Care Reform Law's Unfunded Costs Will Put Pressure on Budget" by Mississippi Senator Thad Cochran (no date)
  • Congressional Budget Office, "Estimated Costs of the Patient Protection and Affordable Care Act" (March 2010)

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