CMS Actuary Report on Obamacare
Richard Foster, chief actuary of the Centers for Medicare and Medicaid Services, released this report on the "Estimated Financial Effects of the Patient Protection and Affordable Care Act as Amended" on April 22, 2010.
In this document, Foster notes that the estimated costs and savings shown in the table are based on the effective dates specified in the law as enacted. Additionally, we assume that employers and individuals would take roughly 3 to 5 years to fully adapt to the new insurance coverage options and that the enrollment of additional individuals under the Medicaid coverage expansion would be completed by the third year of implementation. Because of these transition effects and the fact that most of the coverage provisions would be in effect for only 6 of the 10 years of the budget period, the cost estimates shown in this memorandum do not represent a full 10-year cost for the new legislation.