Feeds:
Posts
Comments

Posts Tagged ‘Congressional Budget Office’

The amount of lies, distortions and outright Bovine Excrement flung around prior to ObamaCare being passed would have filled-up every landfill on Earth if it were toxic waste.

Come to think of it, it may have actually been toxic waste – but I digress.

More to the point the chief actuary for the Centers for Medicare and Medicaid Services, a division of the Department of Health and Human Services, has released a report (pdf file) that lays out the actual cost of ObamaCare.

Note, that’s “actual cost,” as opposed to the Fairy Tale issued by the Congressional Budget Office. You know the one where everything was Unicorns and Lolly-pops where 30 million people could be added to the healthcare rolls at the low, LOW price of – Nothing!.

Now that reality has set-in, and Obama’s bullshit walks, the professional Beancounters have their say:

President Obama’s health care overhaul law will increase the nation’s health care tab instead of bringing costs down, government economic forecasters concluded Thursday in a sobering assessment of the sweeping legislation.

How can this be?

During the health care debate President Obama argued that we couldn’t afford not to pass health care reform bill.

Without getting too deep into the weeds here are the main bullet points of the report:

  • By delaying the major spending provisions until 2014, Democrats hid the true 10-year cost of their legislation: “Because of these transition effects and the fact that most of the coverage provisions would be in effect for only 6 of the 10 years of the budget period, the cost estimates shown in this memorandum do not represent a full 10-year cost for the new legislation,” CMS says.
  • Medicare cuts are unlikely to materialize: The CMS report cautions that “it is important to note that the estimated savings shown in this memorandum for one category of Medicare provisions may be unrealistic.” The reason is that if the proposed cuts to payments to hospitals, nursing facilities, and home health agencies go into effect, “roughly 15 percent of Part A providers would become unprofitable within the 10-year projection period…” The only way to resolve this problem would be to prevent the cuts, which in turn would eat up some of the projected savings from the legislation.
  • You can’t double count the Medicare savings: While in theory Medicare Part A cuts would extend solvency of the program by 12 years, the actuary writes, “In practice the improved (Medicare hospital insurance) financing cannot be simultaneously used to finance other Federal outlays (such as the coverage expansions) and to extend the trust fund, despite the appearance of this result from the respective accounting conventions.”
  • The CLASS Act is a ponzi scheme: One of the most under-reported aspects of the new health care legislation was that it creates a smaller new entitlement within the massive entitlement – a program pushed by Ted Kennedy that would allow individuals to purchase long-term care insurance through the government. But the program begins collecting premiums before paying out benefits, making it produce surpluses in the early years that Democrats claimed as deficit savings. However, CMS notes that, “After 2015, as benefits are paid, the net savings from this program will decline; in 2025 and later, projected benefits exceed premium revenues, resulting in a net Federal costs in the longer term.”

Do any of you ObamaBots still want to argue this health care “reform” was about cutting costs as opposed to taking over a large section of the U.S. economy?

Read Full Post »