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Thread: CBO contradicts Democrat Health Plans

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    CBO contradicts Democrat Health Plans

    CBO: Pelosi plan increases deficits $89 billion in first ten years

    posted at 2:16 pm on November 19, 2009 by Ed Morrissey

    Whoops! The Congressional Budget Office has contradicted Democratic claims that the new ObamaCare bill will reduce the deficit, even in the first ten years of the program. A letter to Rep. Paul Ryan explodes the deficit myth and categorically states that Democratic policies will add to the national debt, and do so almost immediately as well as in the foreseeable future. The CBO considered the “doctor fix” that has already passed the House and is backed by the White House as part of their calculations (emphases mine):

    The Budgetary Impact of Enacting Both H.R. 3961 and H.R. 3962
    Under current law, including the new rule, Medicare’s payment rates for physicians’ services will be reduced by about 21 percent in January 2010, and CBO estimates those payment rates will be reduced by about 2 percent annually for several subsequent years. H.R. 3961 would increase those payment rates by 1.2 percent in 2010 and restructure the SGR beginning in 2011. Those changes would result in significantly higher payment rates for physicians than those that would result under current law. CBO estimates that enacting H.R. 3961, by itself, would cost $210 billion over the 2010–2019 period.

    H.R. 3962, the Affordable Health Care for America Act, would establish a mandate for most legal residents of the United States to obtain health insurance, set up insurance “exchanges” through which certain individuals could receive federal subsidies toward the purchase of such insurance, and make numerous other changes in the health insurance system, in federal health care programs, and in the federal tax code. 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.

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    And it gets worse in the second ten years, as the CBO explains:

    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.

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    "The problem in defense is how far you can go without destroying from within what you are trying to defend from without."

    ~Dwight D. Eisenhower

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    Re: CBO contradicts Democrat Health Plans

    Why am I not surprised?
    "The problem in defense is how far you can go without destroying from within what you are trying to defend from without."

    ~Dwight D. Eisenhower

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    Re: CBO contradicts Democrat Health Plans

    Quote Originally Posted by Strucky View Post
    Why am I not surprised?
    Maybe because you know that the Dems in congress are a bunch of lying thieves?
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

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