Reconciliation recommendation related to the Recapture of Overpayments Resulting From Certain Federally Subsidized Health Insurance

Cost Estimate
April 24, 2012

As approved by the House Committee on Ways and Means on April 18, 2012

H. Con. Res. 112, the Concurrent Budget Resolution for fiscal year 2013, as passed by the House of Representatives on March 29, 2012, instructed several committees of the House to recommend legislative changes that would reduce deficits over the 2012-2022 period. As part of that reconciliation process, the House Committee on Ways and Means has approved three separate provisions as reconciliation recommendations. The following analysis presents estimated budgetary effects for one of those three provisions.

The legislation would require collections of certain overpayments of health insurance subsidies. The staff of the Joint Committee on Taxation (JCT) and CBO estimate that this proposal would have no impact in 2012 or 2013, and would reduce the deficit by $12.9 billion over the 2013–2017 period and $43.9 billion over the 2013–2022 period. This reduction would come from net increases in revenue as well as decreases in direct spending. The estimate of budgetary effects would be the same for any assumed enactment date this year because those effects would not begin until 2014.

JCT has determined that the provision contains no intergovernmental mandates and one private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA). Based on information provided by JCT, the cost of the provision’s private-sector mandate would exceed the annual threshold established in UMRA for private-sector mandates ($146 million in 2012, adjusted annually for inflation) beginning in 2014.