The vast majority of that increase ($10 billion) reflects a reduction in the penalties that the government would have collected from employers who did not comply with the requirement to provide health insurance.The Congressional Budget Office, which released the new estimate Tuesday, also expects more Americans to access federal subsidies purchasing coverage on the new marketplaces.
This story shows that the ad hoc and haphazard way officials are implementing the ACA is changing the law itself—and at great cost to us. It’s not fully clear yet what the endgame is, or if there even is an endgame. We don’t know where the President is taking the ACA as he changes it, or what goal he’s pushing for, if any. But one thing is clear: America will probably be a lot poorer by the time we get there.