Full Repeal of Obamacare Would Hasten Medicare’s Insolvency

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Full Repeal of Obamacare Would Hasten Medicare’s Insolvency

Earlier this week, we released a report estimating the cost full repeal of the Affordable Care Act (ACA), also known as Obamacare, and the savings from various partial repeal options.. But in addition to the impact on the unified budget deficit, ACA repeal could increase deficits facing the Medicare Hospital Insurance (HI) Trust Fund, which funds Part A of Medicare, and accelerate its insolvency.

Under current law, CBO projects Medicare’s HI, or Part A, trust fund will exhaust its reserve by 2026. By our estimate, full repeal of the ACA would advance that insolvency date to 2021 and more than triple the program’s 10-year deficit. Repealing the ACA’s coverage and tax provisions but retaining its Medicare cuts would advance its insolvency date to 2024 and increase its deficit by half. And either change would significantly worsen Medicare HI’s long-term financial outlook.

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