(Image: AMagill under CC 3.0)
According to the nonpartisan Congressional Budget Office, the bill will cost $940 billion over the next decade. That is reduced from earlier estimates of past versions’ expenses.
How will they get this money? Although the CBO predicts that affordable health insurance reform will lead to cost savings in the long run, the government will definitely add to the federal deficit in the short term. In addition, they are finding various sources of money, including:
- Tax increases, including $400 billion in taxes on wealthy individuals and families. Most of it comes from an increased Medicare payroll tax on wages and investment income over $200,000 or $250,000, respectively.
- Spending cuts, such as $500 billion in Medicare Advantage payments (privately administered Medicare supplements)