A repeal of the Affordable Care Act could reduce the deficit by more than half a trillion dollars over the next decade, according to a projection updated Monday from the Congressional Budget Office.
Here are four things to know about the updated projections.
1. The CBO estimated repealing the ACA through the Restoring Americans' Healthcare Freedom Reconciliation Act could reduce the federal deficit by $516 billion between 2016 and 2025. This update is a $42 billion increase from the CBO's earlier projection of $474 billion.
2. The Restoring Americans' Healthcare Freedom Reconciliation Act is a budget reconciliation bill that calls for a repeal of the ACA and includes funding cuts to Planned Parenthood. The measure was passed by the Senate on Dec. 3 and awaits a vote in the House. Since Republicans control both the Senate and the House, reconciliation bills can pass with a simple majority. House Republicans are expected to push the measure through to President Barack Obama's desk. He is expected to veto the bill and Republicans will not be able to override the veto. The whole process is a political move to demonstrate what could happen if a Republican takes the White House in 2016. It also forces President Obama to veto legislation that could reduce the deficit by $516 billion.
3. The CBO updated its projections in light of a recent spending package, the Consolidated Appropriations Act, which Congress passed on Dec. 18. This measure delayed several key taxes under the ACA, including the medical device tax, the health insurance tax and the "Cadillac" tax. The change in the estimate also includes some technical revisions, according to the CBO.
4. According to the CBO, the main budgetary effects in repealing the ACA stem from eliminating the following: health insurance subsidies that would be used on the exchanges, Medicaid expansion, the excise tax on insurance plans with high premiums, penalties for not having health insurance and other provisions estimated to increase federal revenues.
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