Pension plan could cost taxpayers $4.6 trillion if lawmakers leave ACA
The Obama administration’s $4 billion proposal to reform the nation’s pension system is being hailed as a breakthrough by Democrats and conservative lawmakers who are seeking to slash its size by more than half.
The proposal could save taxpayers $2 trillion, according to a study by the Congressional Budget Office.
The Obama proposal would slash the retirement age from 65 to 62.
The White House and congressional Democrats want to replace the ACA with a single-payer health care system, with all Americans buying health insurance from a single insurer and paying a tax penalty.
Under that plan, Americans would receive health insurance premiums and deductibles based on age.
The nonpartisan Congressional Budget office said it would use the analysis to determine the impact of any changes in the ACA.
The CBO said the current ACA would cost the federal government $3.3 trillion in 2019, with $1.6 billion going toward Medicaid.
The plan would replace the federal funding for Medicaid with a $400 billion trust fund for the purchase of health insurance for Americans who are not eligible for Medicaid.
The CBO also said the change in the law would cost taxpayers a total of $4,664,639, or more than $3,000 per taxpayer.
A bipartisan group of House Republicans and Democrats, led by House Speaker Nancy Pelosi of California, have been pushing to cut the pension plan to reduce its size.
The group’s plan would reduce its funding to just $8.2 billion in 2019.