Subsidies to help cover the cost of coverage for those over the age of 65 are growing
This year, taxpayers in the United States will commit more than $660 billion to help subsidize health insurance coverage for those over the age of 65, according to the. The federal agency has released one of its most comprehensive reports concerning the cost of subsidized insurance coverage, highlighting the potential these subsidies have to reduce the national deficit. According to the report, the 2016 tax bill accounts for 3.6% of the country’s gross domestic product. The bill includes many provisions concerning insurance coverage and health care programs.
Report predicts that subsidies will reach $1.1 trillion by 2026
According to the report from the Congressional Budget Office, the cost of health insurance subsidies is likely to grow by 5.4% on average every year over the next decade. By 2026, the agency expects that subsidies will reach $1.1 trillion, approximately 4.1% of the country’s gross domestic product. Spending on the Medicaid and Medicare program is also expected to increase as more people seek coverage through these initiatives due to expanded eligibility in some states.
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Subsidies remain a boon for consumers in need of coverage
Subsidies have been made possible through the Affordable Care Act. These subsidies have increases access to health insurance coverage for millions of people throughout the United States. Last year, federal subsidies became a point of controversy for the government. Several states questioned whether or not subsidies could be offered to consumers in states that did not operate their own insurance exchanges. Fortunately for consumers, the Supreme Court ruled that these subsidies were, indeed, legal, ensuring that millions of people could keep their subsidized coverage.
Estimations concerning the cost of subsidies have gone down by 25%
According to the Department of Health and Human Services, the majority of those receiving coverage through insurance exchanges also receive subsidies, this accounts to approximately 23 million people. While subsidies may be somewhat taxing for the federal government, the Congressional Budget Office notes that subsidies will cost approximately 25% less than what had been estimated back in 2010.