FINAL CBO Report: Health Care Bill will yield SURPLUS

[RandySF]

http://www.cbo.gov/ftpdocs/104xx/doc10464/hr3200.pdf


Happy Friday night all! CBO has released its score of the House health reform bill. Below is the text of the tri-committee's press release:

For Immediate Release:
Energy & Commerce Contact: ******[phone]
Ways & Means Contact: ******[phone]
Education and Labor Contact: ****[phone]

July 17, 2009

CBO Scores Confirms Deficit Neutrality of Health Reform Bill

Washington, D.C. -- The Congressional Budget Office (CBO) released estimates this evening confirming for the first time that H.R. 3200, America’s Affordable Health Choices Act, is deficit neutral over the 10-year budget window – and even produces a $6 billion surplus. CBO estimated more than $550 billion in gross Medicare and Medicaid savings. More importantly, the bill includes a comprehensive array of delivery reforms to set the stage for lowering the future growth in health care costs.

Net Medicare and Medicaid savings of $465 billion, coupled with the $583 billion revenue package reported today by the House Committee on Ways and Means, fully finance the previously estimated $1.042 trillion cost of reform, which will provide affordable health care coverage for 97% of Americans.

"This fulfills the strong commitment of the President and House leadership to enact health reform on a deficit-neutral basis," said Chairman Henry A. Waxman, Chairman Charles B. Rangel, and Chairman George Miller. "The reforms included in this legislation will help control health care costs and expand access to quality, affordable coverage to all Americans in a fiscally-responsible manner."

The estimates also cover important reinvestments in Medicare and Medicaid, including phasing in the closing of the "donut" hole in the Medicare drug benefit. The bill’s long-term reform of Medicare’s physician fee schedule to eliminate the potential 21 percent cut in fees, and put payments on a sustainable basis for the future, will cost about $245 billion. Those costs, however, are not included in the net calculations above, as they will be absorbed under the upcoming statutory "pay go" legislation that is pending in the House.

[Lasher]

1. "Setting payment rates in the Medicare Advantage program...

based on per capita Medicare spending in the fee-for-service sector,,,"

That's good but I'm anxious about other Medicare/Medicaid cuts. They shouldn't be doing anything whatever to diminish these programs.

[Thrill]

2. Obama has already told us what cuts

Mostly things that are big giveaways through Medicare D

[Lasher]

4. I guess I missed those specifics.

Can you list them or point me where I can see them?

[SpartanDem]

7. Here you go

http://www.whitehouse.gov/MedicareFactSheetFinal/

[ipaint]

5. The latest numbers I can find for # of people on medicaid are from

2006- 58 million. An additional 20 million or more uninsured will be rolled into Medicaid because they are under the 133% of poverty income limit. How will that be funded?

How do Medicaid cuts help give and additional 20 million people health care.

[eridani]

3. Odd that they refuse to analyze single payer, no? n/t

[ipaint]

6. Baucus told the director of the CBO

to show positive numbers. Not in those exact words but if you read the conversation the intent was clear.

http://www.pnhp.org/news/2009/march/sen_baucus_wants_cb.php