President Donald Trump’s plan to repeal and replace Obamacare failed to meet the expectations of many, with the Congressional Budget Office estimating that it would lead to a 23 million increase in insurance premiums and the end of Medicaid, the government health program for the poor.
The CBO score, which was released on Monday, shows that Trump’s proposal would reduce the federal deficit by $5.2 trillion over a decade, by $338 billion in 2024 and $1.1 trillion in 2026.
Trump said the plan would reduce premiums by $1,500 per family and $10,000 per person in 2024, but his estimate was slightly lower than that.
The president’s budget plan, which has yet to be released, would slash Medicaid by $772 billion in 2027 and by $3.1 billion in 2021, according to the CBO.
The CBO also said that Medicaid cuts would cause a net increase in premiums of $2,300 per family in 2024.
“While we expect the Medicaid program to continue to grow, the Medicaid reductions and the increase in premium prices will lead to an overall decline in health insurance coverage in the near term, particularly for low-income individuals,” the CBO said in a statement.
“As a result, this plan would result in net losses for the federal government in 2024 of $7 billion.”
The CBO also projected that under the president’s plan, premiums would increase by $2.3 billion over a 10-year period.
The nonpartisan Congressional Budget Services estimated that Trump would save $4.4 trillion over the next decade by repealing and replacing Obamacare.
However, the CBO also warned that “the net impact of the repeal and replacement would be larger than initially estimated because of the projected reduction in the number of people eligible for Medicaid.”
The Congressional Budget Center said that repealing and relocating the Medicaid expansion would cost $2 trillion and that its implementation would increase the federal debt by $9.2 billion.
The center also said it would cost the federal treasury $7.5 billion over 10 years, while the federal economy would shrink by $16.6 billion, it added.
In a statement, the White House called the CBO report “unprecedented” and said the president is committed to “rebuilding our nation’s infrastructure and expanding opportunity for all Americans.”
The White House said that the CBO estimate that repealing Obamacare would lead the federal budget to grow by $4 trillion is “not based on the best available evidence.”
“The CBO’s analysis is not based on any real-world scenario, such as the one described by the President, or any scenario where premiums would actually rise, as the CBO does not even include a scenario where states would have the option to expand Medicaid,” the statement said.
The budget office released its analysis on Monday after Trump took to Twitter and said it “will not help the economy, hurt people, or put people out of work.”
The president said the CBO’s report “will never get through the Senate.”
Trump has faced mounting criticism from Democrats and liberal activists, who have accused the White and Republican parties of pushing the plan to the left in order to score political points.
They also argue that the report is a “sad commentary on our nation.”
On Sunday, House Minority Leader Nancy Pelosi called for Democrats to call a vote on the bill as soon as possible, saying the CBO is “just another Republican Party spin doctor” who wants to score points by making headlines.
House Minority Leader John Lewis, D-Ga., said that Democrats need to “stop making excuses and let the American people see for themselves what this bill will do.”