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CBO says Health care reform will cut the deficit by 118 BILLION over a decade, thoughts?

WASHINGTON — Congressional budget referees say Senate legislation that's now the foundation for President Barack Obama's health care plan would cut the federal deficit by $118 billion over 10 years.

The Congressional Budget Office says the $875 billion, 10-year plan would provide coverage to 31 million people who'd otherwise be uninsured. And it says the cost would be more than offset in savings from changes in Medicare and other programs.

Obama's plan would build on the legislation passed by the Senate on Christmas Eve, by expanding subsidies for health insurance premiums, closing the Medicare prescription coverage gap, and making scores of other changes.

No estimates are yet available for Obama's latest proposal, but Democratic leaders want to keep the 10-year cost at around $950 billion

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sweet-a-kins

Asked by sweet-a-kins at 1:14 PM on Mar. 11, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (17)
  • Since no one knows yet what is in the bill, and what will be added or excluded, this is a guesstimate, not an estimate.

    Check out the figures of what it was ESTIMATED Medicare would cost, and the REAL cost. Those extra zeros are billions of dollars.

    mancosmomma

    Answer by mancosmomma at 1:25 PM on Mar. 11, 2010

  • They are only allowed to give estimates on the info they get. Seeing as it's the Dems giving the info It might be right but the info is bad.
    No way on earth can you add 30 million people to the system and have it deficit neutral. The 500 billion they want to take from Medicare has to be approved by congress. Even the Dems have never cut Medicare when it's been brought up. If they get anything from Medicare it won't be enough. Up go the taxes. It's all a smoke screen. Obama knows he is saving money by gathering taxes for 4 yrs before 90% of the bill goes into effect. Of course he doesn't care what happens in the second ten yrs and beyond because he will not be in office and he can blame someone else. It's the people who need to realize this. There is no garauntee you will get the subsidy and it's a pretty sure bet your plans and your deductables will go up along with your taxes.
    itsmesteph11

    Answer by itsmesteph11 at 1:28 PM on Mar. 11, 2010

  • A Huffpo reprint of an unsourced tabloid opinion piece. Seriously? Guess what, my neighbor says we'll all be on medicaid by 2015. He's about as reliable a source as yours.
    NotPanicking

    Answer by NotPanicking at 1:38 PM on Mar. 11, 2010

  • Steph, how CAN they cut Medicare? We have an aging population, boomers are hitting retirement, people are living longer than ever. Not to mention they want to eliminate the part D "donut hole", which means more money out. If anything, the Medicare budget will need to be expanding in the coming years.

    They talk about eliminating fraud and abuse, but there is no way they can put a finger on the dollar amount. If they know where the fraud was, it would already have been eliminated. (Or so I would hope.)
    mancosmomma

    Answer by mancosmomma at 1:40 PM on Mar. 11, 2010

  • Steph, how CAN they cut Medicare?

    Read the last sentence - they don't even know what the numbers are, so they can't even really say they will cut Medicare. They were given that bill to analyze and in the meantime it's been completely replaced. The CBO still has to analyze it but it has nothing to do with reality. It's like taking someone's review they of 3 scenes from a movie shot by a director who has since been fired, and trying to use that to indicate what the actual finished movie, shot by a different director, will look like. Even if the person quoting the review doesn't know which of those 3 scenes (possibly all of them) ended up on the cutting room floor.
    NotPanicking

    Answer by NotPanicking at 1:57 PM on Mar. 11, 2010

  • Deficit in 2019 : 9,000,000,000,000
    - 118,000,000,000
    _________________
    8,882,000,000,000

    An estimate That doesn't count for O's New Bill Cause no one has seen it...so this estimate is complete bologna!

    Yeah..... Obama care still looks like a no go! Maybe the CBO can do an estimate on how much we will SAVE if Obama isn't reelected!
    Crissy1213

    Answer by Crissy1213 at 2:36 PM on Mar. 11, 2010

  • Those costs are partly offset by revenues from an excise tax on high-premium insurance plans and net savings from other coverage-related sources, leaving a net cost of $624 billion for the coverage provisions.
    In total, CBO and JCT estimate that the legislation would increase outlays by $355 billion and increase revenues by $473 billion between 2010 and 2019.
    Anonymous

    Answer by Anonymous at 2:39 PM on Mar. 11, 2010

  • CBO has not completed an estimate of all of the discretionary costs that would be associated with the legislation. Those costs would depend on future appropriations and are not included in today’s estimate of the direct spending and revenue effects of the bill. As indicated in CBO’s earlier estimate, such costs would probably include an estimated $5 billion to $10 billion over 10 years for administrative costs of the Internal Revenue Service and at least a similar amount for expenses of the Department of Health and Human Services. CBO has also identified at least $50 billion in specified and estimated authorizations of future discretionary spending for a number of grant programs and other provisions.
    Anonymous

    Answer by Anonymous at 2:40 PM on Mar. 11, 2010

  • The average, unsubsidized premium per person covered (including dependents) for new nongroup policies would be about 10 percent to 13 percent higher in 2016 than the average premium for nongroup coverage in that same year under current law.

    All from the CBO.
    Anonymous

    Answer by Anonymous at 2:44 PM on Mar. 11, 2010

  • LOVE this part:


    "CBO has not completed an estimate of all of the discretionary costs that would be associated with the legislation. Those costs would depend on future appropriations and are not included in today’s estimate of the direct spending and revenue effects of the bill."


    Basically, the CBO is saying their estimate doesn't even include all the possible costs.  That's like me estimating my budget while leaving out the cost of food, clothing, gasoline, electricity and other variable expenses.  

    mancosmomma

    Answer by mancosmomma at 3:23 PM on Mar. 11, 2010

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