CBO lowers U.S. deficit estimates as health subsidies fall

Murillo reads a leaflet at a health insurance enrollment event in Cudahy, CaliforniaBy David Lawder and David Morgan WASHINGTON (Reuters) – Health insurance subsidies under the Affordable Care Act will cost slightly less than previously thought, helping to slow down the forecast growth of U.S. deficits over the next decade, the Congressional Budget Office said on Monday. The non-partisan CBO, in revisions to its annual budget estimates, said the reduced subsidy cost estimates partly reflect lower premiums now being charged in government-run “Obamacare” exchanges and accommodations that allow previously canceled health plans to be extended. The reduced health cost estimates made up the bulk of a $286 billion reduction in CBO’s cumulative deficit forecast for fiscal years 2015 through 2024, compared with a forecast in February, to $7.62 trillion.

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