US Will Blow $700 Billion On Obamacare Subsidies In 2018

While Democrats have continuously griped about how Republican measures to slowly dismantle the Affordable Care Act (otherwise known as Obamacare) will sink their chances of cementing control of Congress in this year's midterm elections, the US government is now estimating that it will spend $700 billion on subsidies this year to help provide Americans under the age of 65 with health insurance through their jobs or in government-sponsored health programs, according to a report from the nonpartisan Congressional Budget Office.

The subsidies come from four main categories:

Roughly $300 billion is federal spending on programs like Medicaid and the Children’s Health Insurance Program, which typically help insure low-income people.

Almost as big are the tax write-offs that employers take for providing coverage to their workers.

Medicare-eligible people, such as the disabled, account for $82 billion.

Subsidies for Obamacare and for other individual coverage are the smallest segment, at $55 billion.

Or, as the chart below shows, a plurality of spending goes to Medicaid + CHIP:


While Obamacare initially added tens of millions of Americans to the rolls of the insured, 29 million people will likely go without health coverage for an average of at least one month this year, according to the Congressional Budget Office.

According to Bloomberg, the subsidies in the Affordable Care Act are designed to insulate people from the deleterious impact of premium hikes. The CBO forecast that premiums for mid-range plans will hike by 15% by 2019, and by about 7% annually through 2028.

Several rule changes enacted by the Trump administration have impacted the program more broadly. The non-payment of those subsidies, less enforcement of a rule requiring people to have insurance and limited competition caused insurers to raise their premiums by about 34 percent in 2018, compared to 2017.

That increased the cost of the subsidies to the federal government, according to the CBO.

Thirty-five million Americans could lack coverage by 2028 as rising premiums and the elimination of the individual mandate drive more people to drop coverage.


J S Bach Wed, 05/23/2018 - 22:36 Permalink

They wanted reparations for slavery.  Well, in a medical way, that's all Obamacare is.  And it's STILL not enough.  In truth, nothing will EVER be enough. Whitey has to cough up his entire being to his last gasping breath... and when the last one breathes his last, that STILL won't be enough.

If that time ever comes, the earth's primitive inheritors will create new legends and myths pertaining to the evil "old white one's" which laid low their ancestors' glorious destiny. (i.e. Wakanda)

toady J S Bach Wed, 05/23/2018 - 22:39 Permalink

I retired early when obamacare first started, FREE for the first year since I didn't really have income (They don't check assets)

Went to $200 a month the next year, then $400, then $800, and  was ready to jump to $1600 a month when I finally dumped it... and that was just for me, my wife and kids are all on her work plan.

Just horrible, no doubt about it.

In reply to by J S Bach

macholatte IridiumRebel Wed, 05/23/2018 - 22:52 Permalink


I’m fully convinced that this legislation by Obama was created to fuck the country up as much as possible.


I guess being a late bloomer is better than not being "woke" at all.

Had you been paying attention way back when the royal Pelosi said "you have to pass the bill so you'll know what's in it" you would have realized then that the entire ACA program was a scam from the beginning. It has little do do with care and nothing to do with affordable insurance.  It's all about power and control. Just another way the Progs intend to break America.

Health Insurance is a racket.


In reply to by IridiumRebel

Escrava Isaura revolla Thu, 05/24/2018 - 00:39 Permalink

J S Bach: They wanted reparations for slavery.   Whitey has to cough up his entire being to his last gasping breath...

The ignorance of your comment is astonishing but not surprising because facts don’t matter to right wingers.


some 7.4 million white Americans received coverage — under provisions including Medicaid, the Health Insurance Marketplace, and individual market coverage — while 4 million Hispanics and 2.6 black Americans gained coverage in that period.


In reply to by revolla

Escrava Isaura LetThemEatRand Thu, 05/24/2018 - 01:15 Permalink

Taxes will be raised on the rich and government workers, and it will come from the left, way lefty of the current Democratic Party. However, we’re not there yet.

Also, we need to remember that Obamacare has, mainly, two functions:

Lower healthcare costs in the long run but it was sabotaged by the Republicans and the doctors.

And to generate low-tech jobs because the real economy can’t do it.


In reply to by LetThemEatRand

Escrava Isaura the_river_fish Thu, 05/24/2018 - 05:47 Permalink

We need to change healthcare current social contract. here's how:

Rick Cormier: Americans can be one major illness away from homelessness because we might not be able to afford our medical bill. But, when our home is burning and we need the Fire Dept. ... we never wonder whether we can afford to call them. We just call them with no awareness that it is one of the socialist systems we are depending on.


In reply to by the_river_fish

helloimjohnnycat Escrava Isaura Thu, 05/24/2018 - 06:24 Permalink

if a POS lives next door to me and starts his shit box a'burning, then my fine home might burn. So yeah puncho, we'll call the fire pigs. Besides, our taxes are paying for the service.

but if you're a fatt-fuckk POS smoker / drinker / doper / asshole scooper and become gravely ill, that's no skin off my sack and I don't care. Indeed, I hope you die and take your filthy family with you.

In reply to by Escrava Isaura

paulp Escrava Isaura Thu, 05/24/2018 - 08:47 Permalink

Seems like a bad analogy.  The fire departments can put out a fire or maybe they can't and the house burns down.  In any case the FD will only be working on your house for a few hours or days and that's it.  Whereas the medical care system has very little interest in healing our bodies, it really only "treats" whatever medical condition is ailing us.  So since they don't heal under its care, we are being treated for something for the remainder of our lives.  And there is another big difference, all of us get old and our bodies fail so we will have to avail ourselves of this "treatment" whereas most houses don't burn down.

If the FD was responsible for maintaining all houses for the lifetime of the house then the anaolgy would be better.

You should go back to the class where they explain how to put condoms on cucumbers.  That's seems to be more suited to you thinking.

In reply to by Escrava Isaura

swmnguy SACRED-COW Thu, 05/24/2018 - 09:25 Permalink

"Sacred-Cow": Correct.  The US healthcare system is just fine.  The US healthcare finance system has been in collapse since at least the mid-1980s.  At my first full-time job, for a small company, I was put in charge of getting bids for an employee healthcare plan.  At that time, in 1987, a decent HMO-type plan would have cost about a third of my pay.  It hasn't gotten better.

What we now call "ObamaCare" was written by the Heritage Foundation in 1990, on commission from the healthcare finance industry, because they could see then that they were pricing their product out of the reach of Americans and their employers.  It hasn't gotten better.

Mitt Romney enacted the first version of "ObamaCare" in Massachusetts when he was governor in the early 2000s.  As one would expect, it raised costs and the insurance sector raked in the profits.  Now we're doing it on a national scale.

The system has already collapsed.  It's being propped up by enormous payments by employers.  The cost of employee healthcare is between a third and a half again what the employee gets paid.  Insurance companies are getting out of the Individual market, where I buy my insurance, because they can only charge what individuals can pay, but they can soak employer groups.  No other country dumps the cost of healthcare onto employers the way the US does.  It's an enormous competitive disadvantage for US companies.

We're going to open up Medicare to all Americans.  But we won't do it until after the next financial crisis, at which point the ongoing collapse of the healthcare finance sector becomes too obvious to ignore.

But in the meantime, in the past 18 months I've made about $100,000 delivering fancy business meetings for pharmaceutical, medical device, and health insurance companies.  I have an old $10,000 deductible policy for myself and our two kids, at $615/mo., grandfathered in to ObamaCare, and $12,000 in an HSA plan.  So I'm miles ahead on this scam.  But it's bad for America and it's going to implode dramatically.  And all the politicians opposing opening up Medicare and not having any serious or realistic proposal to do anything else are lighting the fuse on the dynamite.

In reply to by SACRED-COW

ChiangMaiXPat Escrava Isaura Thu, 05/24/2018 - 07:17 Permalink

According to blacks account for 3.8 million but represent 12.1% of the pop. Hispanics account for 4 million but represent 17% of the pop and yes whites account for the most at 7.2 million but represent 77.1% of the pop. African Americans and Hispanics are overly represented by the simple math. So no as usual it’s leftist ideologues like yourself that never tell whole story, some would call that a penchant for lying...

In reply to by Escrava Isaura

jmfortz Escrava Isaura Sun, 05/27/2018 - 11:38 Permalink

7.4 million of everybody that's not Hispanic and black is about 3.7%.

4 million Hispanics equals 10%

2.6 million blacks equal 6.5%.

So blacks are almost twice as many as a percentage then non-black, non-hispanic. While Hispanics are a whopping 10% probably due to all the illegal aliens anchor babies etc etc they're obviously our countrywhile making $10 an hour.

In reply to by Escrava Isaura

bshirley1968 wee-weed up Thu, 05/24/2018 - 00:28 Permalink

Republican congressman and senators ran on the promise of getting rid of this shit. Then Trump promised to repeal it. Then the narrative went from repeal to "repeal and replace". We gave them the House, the Senate, and the WH. What did we get? A repeal of the mandate. The government involvement and outrageous cost go on. They will NEVER give up the income and control.

But, hey, let's talk about campaign spying, Russia-gate, and Stormy Daniels some more. Those are the real issues, right?

In reply to by wee-weed up

Theosebes Goodfellow wee-weed up Thu, 05/24/2018 - 08:14 Permalink

~According to Bloomberg, the subsidies in the Affordable Care Act are designed to insulate people from the deleterious impact of premium hikes.~

Well, considering that it came from a man who NEVER worked a fucking day in his life, that should tell you all you need to know about how well ACA is going to work out. 

It was never about making healthcare affordable. It was about bailing out the insurance companies. Haven't you learned that if Congress calls something "Affordable", it automatically isn't? Sheeesh.

In reply to by wee-weed up

Itdoesntmatter IridiumRebel Thu, 05/24/2018 - 07:14 Permalink

how are you idiots so fuckin isn't the legislation that's fuckin you, it's the insurance companies, who want to go back to the old way that are fucking know, they want to be able to take your premiums then find a way to deny your coverage, they don't want to cover anyone who is sick, or has a pre existing condition.  and you guys are blaming the government...fuck you people are fucking stupid....

In reply to by IridiumRebel

uhland62 toady Wed, 05/23/2018 - 23:22 Permalink

It is just a Darwinian selection system. Create uninsured who don't get healthcare and die off. Who remains will be genetically strong. Would have been more honest to say so, instead of years dillydallying.

In reply to by toady

bshirley1968 uhland62 Thu, 05/24/2018 - 00:21 Permalink

You make the false assumption that healthcare saves lives.

Last year medical malpractice killed around 450,000 people.

Funny how 3rd world countries like India, Pakistan, Bangladesh, Indonesia, Malaysia, and even Mexico have seen population explosions without decent healthcare much less health insurance. Amazing how we populated the planet before the concept of health insurance was ever thought up.

People who are afraid.....especially afraid of dying.....can be convinced to buy anything if you tell them it will make them live longer.

In reply to by uhland62

ZKnight bshirley1968 Thu, 05/24/2018 - 02:09 Permalink

Agreed, the medical industry has nothing to do with health.  It has an incentive to keep people sick and on drugs that treat only symptoms, it is a very profitable business model.


I decided about 15 yrs ago to change my diet, I eat lots of organic & healthy foods, I cured a condition I had called Ankylosing Spondylitis and I am in perfect health at 43.  I play soccer 3 times a week and I am as fit as I have ever been in my life.  I will not take drugs and have only had 1 vaccination shot my whole life (tetanus - when I was younger and lacked knowledge).  Only been sick once in the last 12 yrs (I got a fever while on holidays at the Philippines, took 2 days to recover fully).  I rather enjoy being healthy without health insurance as opposed to many I observe being always sick with health insurance.

In reply to by bshirley1968

Bone-Machine toady Thu, 05/24/2018 - 02:16 Permalink

Yeah, just horrible.  But, not so horrible when you were unnecessarily being subsidized for four years.  And I'm guessing your a Caucasian getting your J S Bach "reparations".  I know of other multi-millionaire Caucasians who also paid little or no cost for their J S Bach "reparations".  I'm not grinding your bones for taking advantage of the "system".  Fuck the system.  I'm just pointing out how full of shit J S Bach and his stupid 20+ Gomer voters are.

In reply to by toady

agNau Justin Case Wed, 05/23/2018 - 23:23 Permalink

X-cellant point......but the cost per fighter is $16 billion.....about 43 fighters.
It's all about priorities in this great country.
A billion here, a billion there....soon you're talking about some real money.
The Libs I talk with about the ACA all don't want to talk about it.....all they say is we need single payer.
Why not follow one huge cluster fuck with an even bigger cluster fuck.
That's what progressives are all about.
None can use a simple calculator.
Progressives = mental retardation.

In reply to by Justin Case

Bone-Machine agNau Thu, 05/24/2018 - 02:49 Permalink

Privatize the single payer system.  Set it up as a regulated, profit based utility traded on the NYSE.  Let the publicly traded insurance companies bid for geographic blocks of coverage.  Federal government is the buyer of last resort.  Bad companies go broke.  Good companies take over.  Cost average the insurance coverage for all participants.  Subsidize base on income and assets.  Watch insurance prices decline and also watch the Big Pharma/Medical Industrial Complex take a haircut.  Of course, it will never happen because our entire system is based on fraud.

In reply to by agNau

1033eruth agNau Thu, 05/24/2018 - 09:46 Permalink

A quick google search provides an honest answer.


Lockheed Lowers Price on F-35 Fighters, After Prodding by Trump. After weeks of pressure from President Trump, Lockheed Martin agreed on Friday to a somewhat larger price cut on its F-35 fighters than it had on the last few orders, and finally brought the cost of the main version below $100 million for each jet.Feb 3, 2017

Lockheed Lowers Price on F-35 Fighters, After Prodding by Trump ...…...

In reply to by agNau