On July 30, the Congressional Budget Office released its
calculation of the impact of the Obama administration’s decision to
delay Obamacare’s employer mandate for one year. Intentionally or
not, the CBO’s $12 billion estimate is flawed, understating by a
wide margin the cost to taxpayers.
On July 3, the Obama administration said that it will not enforce the mandate until 2015, though the law states it “shall” be in effect as of January 1, 2014. The CBO calculates $10 billion in lost revenue from penalties that noncompliant employers would have paid had the mandate been enforced in 2014. The CBO also estimates that only 1 million workers will lose on-the-job coverage “because few employers are likely to drop health insurance from their employees’ compensation packages for just one year.” The CBO assumes half these 1 million workers will enroll in taxpayer-subsidized plans on the exchanges, adding $3 billion to the costs of the health exchanges in 2014. The Obama administration’s decision to delay the mandate shifts these costs from employers to taxpayers.
http://spectator.org/archives/2013/08/05/the-cbos-faulty-numbers
On July 3, the Obama administration said that it will not enforce the mandate until 2015, though the law states it “shall” be in effect as of January 1, 2014. The CBO calculates $10 billion in lost revenue from penalties that noncompliant employers would have paid had the mandate been enforced in 2014. The CBO also estimates that only 1 million workers will lose on-the-job coverage “because few employers are likely to drop health insurance from their employees’ compensation packages for just one year.” The CBO assumes half these 1 million workers will enroll in taxpayer-subsidized plans on the exchanges, adding $3 billion to the costs of the health exchanges in 2014. The Obama administration’s decision to delay the mandate shifts these costs from employers to taxpayers.
http://spectator.org/archives/2013/08/05/the-cbos-faulty-numbers
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