CBO deals new blow to health plan

The Politco ^ | 7/25/2009 | Chris Frater

[tatown]

For the second time this month, congressional budget analysts have dealt a blow to the Democrat's health reform efforts, this time by saying a plan touted by the White House as crucial to paying for the bill would actually save almost no money over 10 years.

A key House chairman and moderate House Democrats on Tuesday agreed to a White House-backed proposal that would give an outside panel the power to make cuts to government-financed health care programs. White House budget director Peter Orszag declared the plan "probably the most important piece that can be added" to the House's health care reform legislation.

But on Saturday, the Congressional Budget Office said the proposal to give an independent panel the power to keep Medicare spending in check would only save about $2 billion over 10 years- a drop in the bucket compared to the bill's $1 trillion price tag.

"In CBO's judgment, the probability is high that no savings would be realized ... but there is also a chance that substantial savings might be realized. Looking beyond the 10-year budget window, CBO expects that this proposal would generate larger but still modest savings on the same probabilistic basis," CBO Director Douglas Elmendorf wrote in a letter to House Majority Leader Steny Hoyer on Saturday.

The proposal's meager savings are a blow to Democrats working furiously to bring down costs in order to win support from their party's fiscally conservative Blue Dogs, who have threatened to vote against the bill without significant changes. The proposal was heralded as a breakthrough on Tuesday after Blue Dogs and House Energy and Commerce Chairman Henry Waxman emerged from the White House with agreement on giving the independent panel, rather than Congress, the ability to rein in Medicare spending.

Saturday's CBO analysis caps a tough week of blown deadlines, partisan bickering and fierce intra-party fighting among Democrats. On Friday, the tension between the Blue Dogs and Waxman exploded when Waxman threatened to bypass his committee and bring the reform bill straight to the House floor without a vote. The move infuriated Blue Dogs who have used their crucial committee votes to leverage changes to the bill.

But by late Friday, Waxman said their colleagues had pulled the two groups "back from the brink" and back to the negotiating table.

Still, Hoyer said there was little chance that that the House would pass a health reform legislation before Friday when lawmakers are expected to leave Washington for summer recess.

[RatRipper]

Instead of “ObamaCare”, I like the term “Zer0Care”.

It is much more descriptive

[freednumb]

BTTT!

[b4its2late]

It’s all about O all the time.

[rcrngroup]

With so much doubt about Obamacare, can’t we just say, there’s too much doubt about the cost, too much doubt as to whether it will solve the nation’s healthcare problems, etc. and Just Drive A Stake Through Its Heart????

Absolutely agree!!! Just kill the whole bill, including Cap n Tax!!! Go ahead Congress (especially you DimWits). Take the rest of the month off. In fact take the rest of 2009 and 2010 off (up till election time). Our homes & property & personal well being are safer when you're not in session. Including the SCOTUS and usurper commie pig TOTUS.

[rcrngroup]

With so much doubt about Obamacare, can’t we just say, there’s too much doubt about the cost, too much doubt as to whether it will solve the nation’s healthcare problems, etc. and Just Drive A Stake Through Its Heart????

Absolutely agree!!! Just kill the whole bill, including Cap n Tax!!! Go ahead Congress (especially you DimWits). Take the rest of the month off. In fact take the rest of 2009 and 2010 off (up till election time). Our homes & property & personal well being are safer when you're not in session. Including the SCOTUS and usurper commie pig TOTUS.

[Lancey Howard]

"In CBO's judgment, the probability is high that no savings would be realized ... but there is also a chance that substantial savings might be realized."

WT? Does anyone here speak Washingtonese?

Yeah, it means the CBO smacked Ubama for peeing on the rug but then patted him on the head and threw him a bone.

[easttennesseejohn]

Every single health policy, even Medicare has a schedule of benefits or explanation of benefits which you get to see BEFORE YOU BUY IT. Does Obamacare? If so, where is it? If not,why not, what are they hiding

[D-fendr]

Money should not be the only gauge of any reform.

Good point. But at least the CBO's guestimates of the costs hurt the bill and/or force more cost reduction which means less healthcare "allowed" which hurts the bill.

Which is also why they're in a hurry to pass it before folks find out the care limits already in there.