Health Reform Cost Projections Go Up

Recently, the Congressional Budget Office (CBO) announced a change to initial cost of the health care reform legislation that was just signed into law. According to the CBO's director the bill will cost $115 billion more than previously thought. When added to the original projection, the estimated cost is now over $1 trillion.

The original statement can be found here: http://www.cbo.gov/ftpdocs/114xx/doc11490/LewisLtr_HR3590.pdf

Reasons given for the increased projection include additional administrative costs for the implementation of the bill, such as those required to expand the role and size of the IRS and the Department of Health and Human Services.

The bill was originally touted as a means of reducing the deficit over the next ten years, but the revised projection seems to leave no room for savings.