Employment Policies Institute Fear Mongers About Democratic Health Care Reform

"Rethink Reform" Ad

Former CBO Director Dr. June O'Neill: "Our country is facing an enormous debt crisis.  Many of the plans to reform health care will make this crisis worse.  As an economist and former director of the Congressional Budget Office, I'm deeply concerned about these health care reforms.  They will add hundreds of billions of dollars to the already $12 trillion national debt.  We are paying $500 million a day in interest alone.  This growing debt is unsustainable; it will have huge negative effects on jobs, taxes, and our economy.  Unfortunately some politicians are using accounting gimmicks to hide the cost of these changes.  And seniors on Medicare will pay the price. [On screen text: Seniors Get Hurt]  Changes are necessary, but I fear these health reforms are definitely not the answer." [YouTube.com, accessed 11/13/09]

Current CBO, Having Spent Time Analyzing The Legislation, Has A Different Position Than The Former Director

CBO: Democratic Bill Would Cost $1 Trillion, Cut Deficit By $109 Billion. According to the Congressional Budget Office's analysis of the Democratic health care plan:

Reflecting the change noted above, CBO and the staff of JCT now estimate that, on balance, the direct spending and revenue effects of enacting H.R. 3962, incorporating the manager's amendment, would yield a net reduction in federal budget deficits of $109 billion over the 2010-2019 period.

[...]

The estimate includes a projected net cost of $891 billion over 10 years for the proposed expansions in insurance coverage. That net cost itself reflects a gross total of $1,052 billion in subsidies provided through the exchanges (and related spending), increased net outlays for Medicaid and the Children's Health Insurance Program (CHIP), and tax credits for small employers; those costs are partly offset by $167 billion in collections of penalties paid by individuals and employers. [CBO, 11/6/09; emphasis added]

CBO: House Bill Will Result In Lower Costs For American Families.  The Congressional Budget Office estimated that in 2016, premiums will be $5,300 for an individual and $15,000 for a family of four in the Exchange.  Without reform, the average family premium is expected to grow to $24,000. [Congressional Budget Office, 11/2/09; House Education and Labor Committee, 11/2/09]

The Democratic Bill "Covers 12 Times As Many People And Saves $36 Billion More Than The Republican Plan."  The Washington Post's Ezra Klein wrote: "According to CBO, the GOP's alternative will shave $68 billion off the deficit in the next 10 years. The Democrats, CBO says, will slice $104 billion off the deficit. The Democratic bill, in other words, covers 12 times as many people and saves $36 billion more than the Republican plan." [Washington Post, 11/5/09]

Democratic Reform Proposals Will Make Medicare More Efficient And Won't Negatively Affect Seniors

"None Of The 'Savings' Or 'Cuts' (Whichever You Prefer) Come From Reducing Current Or Future Benefit Levels For Seniors." According to FactCheck.org, "The House bill would trim projected increases in payments for hospitals, insurance companies, pharmaceutical companies and others, including home health care providers and suppliers of motor-driven wheelchairs. But it also proposes what CBO estimates is a $245 billion increase in spending for doctors, by canceling a scheduled 21 percent cut in physician payments. None of the 'savings' or 'cuts' (whichever you prefer) come from reducing current or future benefit levels for seniors." [FactCheck.org, accessed 9/9/09]

CBO: Cost Changes To Medicare Made From Savings. According to the CBO letter to Senator Baucus: "Changes to the Medicare program and changes to Medicaid and CHIP other than those associated directly with expanded insurance coverage:  Savings from those provisions are estimated to total $93 billion in 2019, and CBO projects that, in combination, they will increase by 10 percent to 15 percent per year in the next decade." [CBO.gov, 10/7/09]