Yesterday Sen. Reid leaked the news that the CBO had scored the Senate’s bill and that claimed that it would be basically revenue neutral, maybe even saving a few billion dollars after the first 10 years. Today the CBO debunked that fantasy stating that with the so-called “doctor’s fix“, which Reid neglected to include in his scoring, the deficits will increase by $89 billion in the first 10 years:
CBO and the staff of the Joint Committee on Taxation estimate that enacting H.R. 3962, by itself, would reduce federal budget deficits by $109 billion over the 2010–2019 period through its effects on direct spending and revenues.
CBO estimates that enacting both H.R. 3961 and H.R. 3962 would add $89 billion to budget deficits over the 2010–2019 period. That amount is about $12 billion less than the sum of the effects of enacting the bills separately. The $12 billion difference results from two types of interactions. The higher payment rates for physicians’ services under H.R. 3961 would increase the net cost of provisions in H.R. 3962 by about $3 billion. However, that difference would be more than offset by the effect of a change under H.R. 3962 in how payment rates for Medicare Advantage plans are set. That change would reduce the effect of the changes made by H.R. 3961 to Medicare’s payments for physicians’ services in the fee-for-service sector on payment rates for Medicare Advantage plans. As a result, the estimated increase in payments to Medicare Advantage plans would be $15 billion smaller if both bills were enacted than under H.R. 3961 alone.
This just proves the obvious that the Democrats are playing financial games in order to trick the American public into passing legislation that will clearly not be deficit neutral. Anyone with half a brain knows that the expected costs will be no where near the actual costs when it is all said and done, but this blatant dishonesty from Reid and Pelosi by hiding the doctor’s fix is outrageous. As bad as this is, the news is even worse after the first 10 years:
The agency estimates that the two bills together would cost about $32 billion more in 2019 than H.R. 3962 alone and that the combination of the two bills would increase the budget deficit in 2019 by $23 billion relative to current law. Those increments would grow during the following decade. As stated in its October 29, 2009, letter to Congressman Charles B. Rangel, “CBO expects that [H.R. 3962] would slightly reduce federal budget deficits in that decade relative to those projected under current law—with a total effect during that decade that is in a broad range between zero and one-quarter percent of GDP [gross domestic product].” If both H.R. 3961 and H.R. 3962 were enacted, CBO expects that federal budget deficits during the decade following the 10-year budget window would increase relative to those projected under current law— with a total effect during that decade that is in a broad range between zero and one-quarter percent of GDP.
In other words, in the second decade after this goes into effect the projected deficit is $300 billion dollars! Now, the projected cost of Medicare was off by something like 1000% over when it was first passed into law and 1990. If we apply that same math the actual cost to this health-care bill is astronomically high. Even if we say that it’s off by 100% we’re still talking about $1 trillion dollars of extra deficit on top of what we already have.
Call your senator now, tell them they cannot vote for this bill!









November 19th, 2009 at 5:11 pm
These democrats are on auto pilot, marching to the beat of their own drums. The decision to be in favor of this disasterpiece or not has been decided a long time ago and there is nothing at all that will change that. An overwelming majority of Americans are against this, it is really going to cost 2.5 trillion dollars that we don’t have, it will cause us to go broke, it will be impossible to sustain this type of spending, healthcare will be rationed, seniors are going to get the shaft, and treatment will take months instead of days causing death. November 2010 cannot come fast enough, but the question is, will it be too late?
A Republican president and Congress will need to repeal all the damage democrats are passing if at all possible, including this healthcare disaster and illegal immigration amnesty going back to the year 2000. Criminal charges against any politician that is found to break the law while the democrats are in power will need to be sought as well. obama himself may need to be investigated upon the inauguration of the next Republican president in 2012.
Let’s hope we will make it until then!
November 19th, 2009 at 7:15 pm
They say 89 billion, but they don’t realize that everyone will sign up for this making it single payer. Thus making it much much more in the long run. This makes it so moderate Democrats in the Senate aren’t going to vote for it. The only way to even think about passing this is by making it budget neutral. Now that will only come through tax increases plain and simple. And unless they want to make that there last vote in the senate the wont support tax increases.
November 20th, 2009 at 9:14 pm
Stumbled across your post while searching through yahoo. I read the beginning and its great! I do not have time to finish it now, but I have bookmarked your site and will read the rest later. : )