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CRS report finds deficit reduction would have limited impact on ACA

Posted on October 4, 2012 | No Comments

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Implementation Briefs

According to a report released by the Congressional Research Service (CRS) earlier this week, the impact of the sequestration on the Affordable Care Act (ACA) would be limited. The CRS brief reported that the ACA includes many provisions that provide a vast amount of support to increase coverage, fund states to establish exchanges, and test demonstration projects and programs. The report found that the majority of the Budget Control Act of 2011 cuts do not target the ACA’s mandatory provisions to expand insurance coverage. Some mandatory ACA spending would be affected, such as the funds allocated to small-employer tax credits to help offset the cost of covering all employees. The other mandatory appropriations under the ACA would, for the most part, be subject to about a 7.6 percent reduction under the sequestration. Additionally, the Budget Control Act would reduce Medicare provider spending by approximately $11.1 billion in 2013. Medicaid spending is exempt from the law.

In another report also released earlier this week, CRS outlined funding allocations for the discretionary ACA programs. The report cited the Congressional Budget Office (CBO) estimate that the ACA discretionary spending provisions, if fully funded, would result in about $106 billion worth of spending from 2010 to 2019. The CRS report found that most of this discretionary spending would be subject to an 8.2 percent reduction under the Budget Control Act.

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