CMS Report: Financial Effects of Reid Health Care Legislation

Center for Medicare and Medicaid Services: Estimated Financial Effects of the “Patient Protection and Affordable Care Act of 2009,” as Proposed by the Senate Majority Leader on November 18, 2009.

The report reads in part:

We estimate that total national health expenditures under this bill would increase by an estimated total of $234 billion (0.7 percent) during calendar year 2010-2019, principally reflecting the net impact of (i) greater utilization of health care service by individuals becoming newly covered (or having complete coverage.) (ii) lower prices paid to health providers for the subset of those individuals who become covered by Medicaid, and (iii) lower payments and payment updates for Medicare services, together with net Medicaid savings from provisions other than the coverage expansion.

The PDF is attached.