Every wonder just how much implementation of PPACA will cost? The Congressional Budget Office is full of predictions about how much the law will cost the federal government, but their analyses do not examine the cost-impact on state budgets or on private companies. However, the American Action Forum, a think tank run by former CBO Director Douglas Holtz-Eakin has released a new study that looks at the budgetary impact the new law will have on states and private entities.
This state-by-state analysis finds that PPACA implementation has cost $27.6 billion in new regulations so far, including at least $20.4 billion in lifetime costs on private entities and $7.2 billion in increased burdens on state budgets. Furthermore, the group has found that at least five state budgets will be hit with $1 billion or more in regulatory costs. Some of the most expensive provisions include establishing exchanges ($3.4 billion), adopting a standard health plan ($2 billion), menu labeling ($757 million) and making Medicaid program eligibility changes ($580 million).