Ritter Insurance Marketing, Craig Ritter

CBO Reports that ACA Will Reduce Labor Force by 2.5 Million Workers by 2024

Here is a link to the CBO’s updated 2014 Budget and Economic Outlook projections.  The updated estimates for insurance coverage are found beginning on page 105 and the Labor Market Effects of the ACA are found beginning on page 117.

Some of the interesting highlights include:

  • On page 106, you will find the effects of on the deficit.  You can see that spending on Exchange Subsidies are projected to ramp up rather quickly.  Starting at $20 billion this year, in just 3 years, subsidies are expected to exceed $100 billion/year starting in 2017 and continue to rise to $159 billion by 2024.
  • On page 107, the CBO expects about 6 million people to receive coverage on the exchanges (down from their earlier estimate of 7 million), however, in 3 years, the number is expected to quadruple to 24 to 25 million by 2017.
  • Roughly 80% of those enrolled via exchanges are expected to receive subsidies.
  • On page 108, the ACA expects to reduce the number of uninsured Americans by a little less than half.  Roughly decreasing the uninsured by 25 million by 2017 from 56 million to 30 million.
  • The CBO expects the pool of Employment based coverage to fall by 2 million in 2015 and by another 4 million in 2016 (6 million total decrease by 2016.
  • Average subsidies are expected to be $4,700 per enrollee in 2014, rising to about $5,600 by 2017.
  • On page 117, the CBO expects about 2 million people by 2017 to exit the workforce due to the availability of subsidized insurance coverage and expects this to increase to 2.5 million by 2024.

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