President Obama's deficit reduction package unveiled Monday would fix a health reform defect that could cost taxpayers $14.6 billion.

The Affordable Care Act as it stands would allow middle-class early retirees to get virtually free health coverage by qualifying for Medicaid, a program meant for the poor. It would also have unintended consequences for tax credits that will help Americans buy private health insurance through exchanges in 2014. 

Tax credits and a Medicaid expansion are both planned to help cover 30 million uninsured people.

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