How will the new law affect the federal budget deficit?
Under the new law, Medicare spending increases will slow down and new revenues will be raised, primarily from taxes paid by people with incomes over $200,000. Together, the savings and dollars coming in are expected to be greater than the money going out to pay for new benefits. Therefore, the CBO has estimated that the new law will reduce the budget deficit by $124 billion over 10 years. Will the new law make it easier to receive and pay for long-term care at home?Yes, the law provides new incentives for states to make it easier for lower income people who are on Medicaid to get long-term care at home instead of in a nursing home by providing extra federal funds to provide in-home services. Also, the law creates the CLASS Act (Community Living Assistance Services and Supports), which allows full and part-time workers with incomes of at least $1,200 per year to enroll in a program that provides a cash benefit averaging $75 per day to help them stay at home when they become unable to ca
Under the new law, Medicare spending increases will slow down and new revenues will be raised, primarily from taxes paid by people with incomes over $200,000. Together, the savings and dollars coming in are expected to be greater than the money going out to pay for new benefits. Therefore, the CBO has estimated that the new law will reduce the budget deficit by $124 billion over 10 years.
