George Washington dollar bill with collage of falling stock chart on it By 2030, total subsidies are estimated to be $1.4 trillion, also 4.4% of GDP. (Photo: Shutterstock)

Net federal health insurance subsidies for Americans under age 65 are expected to total $920 billion next year, according to the latest report from the Congressional Budget Office and the staff of the Joint Committee on Taxation.

The federal government subsidizes health insurance for most Americans in this age group through various programs and tax provisions. The report describes updated baseline projections of the federal costs associated with each kind of subsidy and the number of people with different types of health insurance:

  • Medicaid and the Children's Health Insurance Program account for about 45% of the federal subsidies annually during the period;
  • Subsidies for employment-based coverage, about 35%;
  • Payments for Medicare, about 15%; and
  • Subsidies for coverage obtained through the marketplaces established by the Affordable Care Act or through the Basic Health Program, about 5%.

The projected total for 2021 is 4.4 % of gross domestic product. By 2030, total subsidies are estimated to be $1.4 trillion, also 4.4% of GDP. During that 10-year period, total subsidies are expected to total $10.8 trillion. These estimates assume that current laws governing health insurance coverage and federal subsidies for that coverage remain in place.

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