A bill delaying the implementation of the individual coverage mandate under the Patient Protection and Affordable Care Act would reduce the federal deficit by approximately $35 billion from 2014 to 2023, according to an estimate from the Congressional Budget Office and the Joint Committee on Taxation.
The House of Representatives passed the Fairness for American Families Act (H.R. 2668) in July. The bill would delay by one year the reform law's requirement that U.S. residents have insurance coverage by Jan. 1, 2014, with those who don't comply facing financial penalties. This provision would be entirely responsible for the estimated federal deficit reduction over the next decade, according to the CBO. The federal government would see lower outlays and higher revenues due to fewer people seeking health insurance coverage through Medicaid and the Children's Health Insurance Program. Additionally, fewer people would obtain federally subsidized coverage through the new health insurance exchanges in 2014.
The legislation would also delay by one year reporting requirements for health insurers and employers. It would also delay penalties for large employers that don't offer health insurance coverage that meets the PPACA affordability standard.
The House vote was largely symbolic, as the bill is not expected to pass in the Democrat-controlled Senate. The CBO and JCT estimate is in line with a preliminary analysis released earlier this year projecting that delaying the mandate would reduce the federal deficit both in 2014 and for the next 10 years.
However, the CBO and JCT have also estimated that premiums on individually purchased health insurance would be higher than they would be under current law implemented as planned. Additionally, the number of uninsured Americans would increase if the individual mandate was delayed.
More Articles on the Individual Mandate:
IRS Finalizes Penalty for Not Buying Insurance
In Symbolic Vote, House Votes to Delay PPACA Individual and Employer Mandates
CBO: Individual Mandate Delay Would Reduce Deficit, Increase Premiums