Medicare and Deficit Estimates Revised Upward

Fox News ^ | 1/29/04

[billbears]

WASHINGTON — President Bush's 2005 budget proposal estimates that his Medicare bill will cost one-third more than the $400 billion the White House promised, and predicts the largest deficit ever in dollar terms, congressional aides said Thursday.

Bush will send the budget for the 2005 fiscal year, which starts Oct. 1, 2004, to Congress on Monday, barely a week after wrapping up the 2004 budget fight.

The president now estimates that the just-enacted prescription-drug program and Medicare overhaul will cost about $540 billion, and that this year's budget deficit will be about $520 billion, congressional sources told The Associated Press.

That deficit figure would easily surpass the $375 billion shortfall of last year. The new estimates come as Bush braces for a difficult election-season fight with Congress over his spending, which has angered budget watchdogs, including some conservatives.

Six of this year's 10 domestic spending bills cost more than Bush proposed, according to House Appropriations Committee figures. The conservative Citizens Against Government Waste (search) estimates all 13 bills had more than 10,000 "earmarks" for congressmen's home-district projects.

"This administration has been unwilling to fight those battles," said Steve Ellis, vice president of the conservative Taxpayers for Common Sense (search).

As the Medicare measure, which Bush signed last month, was moving through Congress, the president, White House officials and congressional Republican leaders had assured doubting conservatives that the bill's costs would stay within the $400 billion estimate.

The new Medicare estimate comes from the Medicare actuaries, and is a figure the president is compelled to include in his budget estimates. However, in Bush's stump speeches around the country, he has stressed that the real costs of Medicare may drop as additional prescription drugs could prevent some more costly medical procedures.

Additionally, the Congressional Budget Office, Congress' nonpartisan fiscal analyst, estimated the bill's 10-year cost at $395 billion.

Some conservatives voted against the legislation anyway. Many are now angry that Bush has presided over excessive increases in spending and budget deficits.

"I'm not the least bit surprised," said Rep. John Shadegg (search), R-Ariz., who voted against the Medicare bill and said he had heard the cost estimate would rise. "Historically, our estimates of what these programs will cost have been so far off as to be meaningless."

An administration official, speaking on condition of anonymity, acknowledged that the estimate would rise to nearly $540 billion.

[billbears]

Different version of the same story from Fox News. Plan hasn't even been active for 3 months and it's already 30% more than we were told to pass this behemoth. Wonder what it's going to look like 3 or 4 years from now?

[billbears]

Bush has yet to cast a veto after three years in office. He often uses the threat of a veto to get his way, issuing 19 as Congress considered the 13 annual spending bills for this year.

Here's some government waste for you. $20 mil for NEA grants? Paltry compared to $140 billion extra only 3 months after the bill passed

[In_25_words_or_less]

Yikes. And I bet no one's thinking another round of tax cuts will pay for it.

[billbears]

One time ping for a few on the NEA thread. Don't know if any of you have had a chance to see this 'wonderful' news...

[RJCogburn]

I find it a bit hard to believe that the figure for the Medicare bill could have been so far off and nobody of importance realized it before.

Clintonesque actions of high order.

[KantianBurke]

Vote Dubya!

Because spending the taxpayer's money like the average teenage blonde airhead with Daddy's credit card is GOOD for the country!

[NittanyLion]

This was so easily predictable, yet a cadre of diehard GOP-firsters on this site vehemently denied the expectation that this bill would increase in cost over time. Can't wait to see the bill in 5 years.

Something tells me those folks will studiously avoid this thread...

[billbears]

If the 10 year cost isn't over a trillion in less than 4 years, I'll be suprised. Just look at LBJ's Medicare plans and how much that was supposed to cost originally.

[NittanyLion]

Yep, a trillion dollar estimate within 5 years would be my guess.

[RJCogburn]

Something tells me those folks will studiously avoid this thread...

Still stuck to their screens over at the "Day in the Life" thread.

[NittanyLion]

Well, Dubya does look mighty good in those jeans...I'm sitting here crying just looking at our lovely president.

LOL.

[KantianBurke]

Want to think about something that'll bring a tear to ur eye? Just remember that all these billions are going to be paid for by YOU and ME.

[ambrose]

Wooo hooo!

[JohnGalt]

I was too distraught to even post on the NEA thread, but I can least let out an 'Ugh' on this thread.

While we were sent out to pasture during the Iraq War, it looks like a few will stick it out with such disreputable company as thou over the spending issues, though I wonder will they ever figure out the welfare-warfare connection?

In liberty,

[LWalk18]

A cynical person would think that the NEA announcement was a sort of smokescreen to keep people from this $140 billion 'miscalculation'.

I wonder if this thread will have 1100+ posts?

[billbears]

Hadn't thought about that. I have to admit I haven't seen it played up on Fox. Doubt I will see it much more than the screen crawl

[Finalapproach29er]

His MBA from Harvard doesn't look to impressive today.

[FITZ]

It's stupid for us to turn the control of our lives and healthcare over to the government. This past summer in France should be a good example of what can happen, the government decides older people don't need fans ---- and look how much health care is being saved now in that country from so many not being around anymore.