President Donald Trump is expected to propose an overhaul of the federal health care system, according to a new report.
The report from the nonpartisan Congressional Budget Office predicts that Trump’s health care plan would cost $10.4 trillion over the next decade.
The plan would eliminate the Affordable Care Act’s Medicaid expansion and the ACA’s tax credits for purchasing insurance and would also slash the taxes paid by employers and individuals.
“The Trump administration is likely to take a look at a number of alternative proposals and could propose a new system, as the report states,” CBO said in a report.
“It would be premature to predict whether the plan will emerge from the administration as a permanent replacement for Obamacare.”
The report also says that if Trump does pursue a major overhaul, the federal government could end up losing $1.9 trillion in spending through 2026.
“If the plan is not repealed, the impact would be large.
The CBO estimates that the federal budget deficit could exceed $1 trillion for the first time in the 20th century,” the report said.
The Congressional Budget Board has previously forecast that the tax credits and Medicaid expansion would cost more than $20 trillion in 2024 and 2025.
It also warned in 2016 that Trump could have a “major failure” if his health care bill fails.