CBO: GOP Health Care Repeal (H.R. 2) Would Increase Deficit $145 Billion

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The Congressional Budget Office (CBO) has an analysis of the GOP's bill to repeal health care reform. In addition to the very real effect of re-introducing the preexisting condition and eliminating health care for children, the repeal (which will go nowhere and is a waste in time and political theater from the GOP for the base) would increase the deficit:

As a result of changes in direct spending and revenues, CBO expects that enacting H.R. 2 would probably increase federal budget deficits over the 2012–2019 period by a total of roughly $145 billion, plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. That figure consists of the following two components:

• About $130 billion, representing the net reduction in deficits over the 2012–2019 period expected to result from the health care provisions of the enacted legislation (as estimated by CBO and JCT last March), plus

• About $15 billion, representing the reduction brought about by the Medicare and Medicaid Extenders Act of 2010 in the estimated cost of subsidies to be provided through the insurance exchanges through 2019.

It continues:

Relative to current law, enacting H.R. 2 would, CBO estimates, increase federal budget deficits in the decade following 2019; similarly, the legislation would increase budget deficits in the decade following 2021 and in subsequent years.