Senate Health Care Bill Savings a Big Lie

Discussion in 'Economics' started by pspr, Dec 24, 2009.

  1. pspr


    How can Obama and Reid keep lying about the costs of this bill?

    Budget Office Rebuts Democratic Claims on Medicare

    The Congressional Budget Office challenged claims by health-care overhaul proponents that Medicare savings in Senate legislation would help finance expanded coverage and postpone the bankruptcy of the medical program for the elderly.

    The nonpartisan agency said the $246 billion it projected the legislation would save Medicare can’t both finance new programs and help pay future expenses for elderly covered under the federal program.

    Nor could those savings be used to extend the solvency of Medicare, set to run out of money in 2017, the budget office said in a letter to Senate Republicans.

    “What we’ve seen is a colossal manipulation” by Democrats “of the accounting scores of CBO” and the independent actuary of the Centers for Medicare and Medicaid, said Alabama Senator Jeff Sessions, the Republican who requested the analysis from CBO. He called the letter “a potential game-changer.”

    The estimated Medicare savings in the legislation overstate “the improvement in the government’s fiscal position,” the CBO said in the letter.

    “The true increase in the ability to pay for future Medicare benefits or other programs would be a good deal smaller,” the budget office said.

    Reid Aide’s Response

    A spokesman for Senate Majority Leader Harry Reid said the CBO letter doesn’t reflect on the overall health-care bill, which the Senate is set to approve tomorrow.

    “Today’s letter deals explicitly with Medicare, not the overall short and long-term budgetary impact of the legislation,” Reid spokesman Jim Manley said in an e-mail.

    Manley said the CBO still projects that the bill will reduce the deficit the first 10 years by $132 billion and by $650 billion to $1.3 trillion in the second decade.

    At a press conference, Sessions said the CBO report shows that the legislation the Senate is poised to pass wouldn’t create “a $132 billion surplus, but would add $170 billion to the deficit.”

    Sessions described the Democrats’ accounting as “a $300 billion misrepresentation. That $300 billion converts a $132 billion alleged surplus, a reduction of the debt by the legislation, to a $170 billion increase in the debt,” Sessions said.

    Trust Fund

    The budget office said that whenever the Medicare trust fund runs a surplus, the savings are turned over to the U.S. Treasury, which issues bonds to borrow for the future needs of participants in the health-care program for the elderly. The trust fund is currently running annual deficits.

    North Dakota Democrat Kent Conrad, chairman of the Senate Budget Committee, has said that the Senate legislation would postpone the Medicare trust fund’s projected 2017 insolvency by several years.

    To credit such projected savings as helping to extend Medicare’s solvency “ignores the burden that would be faced by the rest of the government later in redeeming the bonds held by the trust fund” to pay for future Medicare expenses, the budget office said.

    Arguments that the Medicare savings would both extend Medicare’s solvency and help finance “new spending outside of Medicare would essentially double count a large share of those savings,” the CBO said.
  2. Illum


    Yea, I really think they know all too well. They are going to raise taxes like crazy. I think that's why they are cracking down on all the tax havens now. You will have nowhere to go, or so they hope.
  3. S2007S


    Of course its a lie, everything they are pushing through involves lies.

    Aside from that its going to cost California an additional $4 Billion a year and the state of New York $1 Billion annually in new state medicaid costs.
  4. And remember, this is the Congressional Budget Office calling their bluff...not the Republicans, the Heritage Foundation, CATO Institute, etc. If anything, the CBO tend to go easy on the numbers.
  5. S2007S


    I wanted change in this economy but man are they taking it too many trillions tooooo far.

    I think republicans take it back shortly, im not even for any party, Im just saying.....
  6. Republicans are munching on big dick , Obama gave them big one , and black one.This country will never be the same , that's it. Good things don't last forever.
  7. John Adams said democracies (ok...representative democracies) are never destroyed from the outside, they always commit suicide.
    Merry Christmas ya'll.
  8. dewton


    RIP America- you've had a good run for these 200 some years.