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Analysis of a Permanent Prohibition on Implementing the Major Health Care Legislation Enacted in March 2010 1 (May 2011)

handle is hein.congrec/cbo08028 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Douglas W. Elmendorf, Director U.S. Congress Washington, DC 20515 May 26, 2011 Honorable Henry A. Waxman Ranking Member Committee on Energy and Commerce U.S. House of Representatives Washington, DC 20515 Dear Congressman: In response to your request, this letter discusses the budgetary effects of legislation that would permanently prevent the use of appropriated funds to implement the Patient Protection and Affordable Care Act of 2010 (PPACA) and provisions related to health care in the Health Care and Education Reconciliation Act of 2010, Public Laws 111-148 and 111-152, respectively.' The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) have previously estimated the effects of legislation that would temporarily prevent the use of appropriated funds to implement PPACA and the Reconciliation Act. Specifically, earlier this year, CBO and JCT estimated the budgetary effects of enacting section 4017 of H.R. 1, the Full-Year Continuing Resolution Act, as passed by the House of Representatives on February 19, 2011. That provision would have prevented the use of funds appropriated in H.R. 1-that is, any funding for fiscal year 2011-to implement PPACA and the Reconciliation Act.2 CBO and JCT found that such a temporary prohibition, extending through the remainder of fiscal year 2011, would reduce the budget deficit by about $1.4 billion in 2011 but would increase deficits by almost $6 billion over the 2011-2021 period.3 H.R. I was ultimately supplanted by H. R. 1473, the 1 The Reconciliation Act (P.L. 111-152) also included provisions affecting education. The effects of a prohibition on the use of funds to implement any provisions of PPACA and the Reconciliation Act would affect spending on education, but this letter focuses only on the health care provisions of the act. 2 Section 4017 of H.R. 1 applied to both the health care and education provisions of the Reconciliation Act; CBO's estimate for H.R.1 therefore included both of those effects. 3 Congressional Budget Office, cost estimate for H.R. 1, Full-Year Continuing Appropriations Act of 2011 (March 10, 2011).

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