CBO: Deficits to drift lower on lower health costs

by Andrew Taylor

A congressional report predicts slightly smaller deficits both this year and over the coming decade, with lower spending on federal health care spending being the main reason.

A Congressional Budget Office report Monday said this year's deficit will now be $492 billion, $23 billion less than previously estimated.

The CBO estimated that over the coming 10 years the deficit will total $7.6 trillion, $286 billion less than projected in February.

The biggest factor is $165 billion less in spending on health insurance subsidies for policies sold through exchanges created under Obamacare. Those policies so far are proving to be less costly than the CBO originally thought, mostly because of tighter management of treatment options.

Medicare spending will also dip slightly, mostly because of lower-than-expected prescription drug costs.

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Health care agency passes $1 trillion milestone

Mar 04, 2014

The government's biggest health care agency is passing the $1 trillion mark in President Barack Obama's new budget, a milestone for the Department of Health and Human Services.

Medication spending may rise five percent this year

Mar 06, 2014

(Medical Xpress)—Total spending on prescription medications has been declining for several years, but that trend is expected to reverse and rise 3 to 5 percent for 2014, according to a new report by a team ...

Recommended for you

New toilets for India's poor, crime-hit village

41 minutes ago

More than 100 new toilets were unveiled Sunday in a poverty-stricken and scandal-hit village in northern India, where fearful and vulnerable women have long been forced to defecate in the open.

Can YouTube save your life?

Aug 29, 2014

Only a handful of CPR and basic life support (BLS) videos available on YouTube provide instructions which are consistent with recent health guidelines, according to a new study published in Emergency Medicine Australasia, the jo ...

Doctors frequently experience ethical dilemmas

Aug 29, 2014

(HealthDay)—For physicians trying to balance various financial and time pressures, ethical dilemmas are common, according to an article published Aug. 7 in Medical Economics.

AMGA: Physician turnover still high in 2013

Aug 29, 2014

(HealthDay)—For the second year running, physician turnover remains at the highest rate since 2005, according to a report published by the American Medical Group Association (AMGA).

Obese or overweight teens more likely to become smokers

Aug 29, 2014

A study examining whether overweight or obese teens are at higher risk for substance abuse finds both good and bad news: weight status has no correlation with alcohol or marijuana use but is linked to regular ...

User comments