A new federal health care bill would give the federal government $1 trillion in new revenue to help pay for the cost of Medicaid expansion and other programs, including free community health centers and prescription drug coverage.
It would also reduce the deficit by $2.2 trillion over 10 years, according to a new analysis from the Congressional Budget Office.
The nonpartisan Congressional Budget Association (CBO) is projecting that the federal budget would fall $4,200 for every $1 in new spending under the bill.
It will also increase federal debt by $4 trillion over the next decade.
“While this is a substantial increase over the $4 billion increase the CBO estimated for the Medicare plan in 2017, we estimate the new revenue would be offset by a net reduction in Medicare spending of $2,000 per beneficiary,” the nonpartisan CBO said.
The bill would eliminate the Affordable Care Act’s Medicaid expansion.
It also would repeal the employer mandate and raise the retirement age for Medicare beneficiaries to 67 from 66.
The bill would also eliminate Obamacare’s mandate to buy insurance or pay a penalty.
It also would cut the number of Medicare Advantage plans from 16 million to 11 million, and cut subsidies for the plans.
It does not increase Medicare payments to insurers.
The Senate bill includes a $250 billion tax cut, but not a major tax cut.
It still includes a tax increase on wealthy Americans, but the increase is limited to the first $10,000 of income for people making $1 million and up, or $250,000 for families making more than $200,000.
The tax cut for everyone else would be phased out over a decade, and the top tax rate would go up to 39.6 percent.
It’s expected to reduce deficits by $1,000 a year for 10 years.
The CBO also projects that the bill would increase federal revenues by $300 billion over the first 10 years after the tax cuts expire.
The money would come from reducing health care spending.
It could also be used to help finance infrastructure projects or for other purposes.
The Congressional Budget Act of 1974 included an exception for Medicaid expansion that allows states to waive their requirement that they pay the full cost of a program.
The new CBO analysis shows that Medicaid expansion would likely boost the economy by about $2 trillion in 2026.
The cost would be spread out over 10 to 15 years.
That is an estimate that reflects the current enrollment in the Medicaid expansion program and the projected future growth in the federal deficit.
The report also said that the cost would fall by $350 billion over 10, 10 to 20 years if states had not increased Medicaid eligibility.
It is expected that states will continue to expand Medicaid under the House and Senate bills.
In the last five years, the federal debt has grown by $3.3 trillion, according the CBO.
It said that in 2023, the debt will be $4tn higher than it was in 2020, and by 2031, the national debt will have risen by $5.6tn.
The deficit would be $5 trillion higher.