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  • CBO: Obama Health Plan Will Weaken Economy

    The Washington Post reports:

    Instead of saving the federal government from fiscal catastrophe, the health reform measures being drafted by congressional Democrats would worsen an already bleak budget outlook, increasing deficit projections and driving the nation more deeply into debt, the director of the nonpartisan Congressional Budget Office said this morning.

    Under questioning by members of the Senate Budget Committee, CBO director Douglas Elmendorf said bills crafted by House leaders and the Senate health committee do not propose “the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a signficant amount.”

    “On the contrary,” Elmendorf said, “the legislation significantly expands the federal responsibility for health care costs.”

    From later in the article:

    “I’m going to really put you on the spot,” Conrad told Elmendorf. “From what you have seen from the products of the committees that have reported, do you see a successful effort being mounted to bend the long-term cost curve?”

    Elmendorf responded: “No, Mr. Chairman.”

    Asked what provisions would be needed to slow the growth in federal health spending, Elmendorf urged lawmakers to end or limit the tax-free treatment of employer-provided health benefits, calling it a federal “subsidy” that encourages spending on ever more expensive health packages. Key senators, including Conrad, have been pressing to tax employer-provided benefits, but Senate leaders last week objected, saying the idea does not have enough support among Senate Democrats to win passage.

    And Elmendorf was just testifying about the exploding costs of the Democrats health plan. The employer mandates, the surtax on small businesses, and the individual mandates are all economy killers too.

    Posted in Economics [slideshow_deploy]

    13 Responses to CBO: Obama Health Plan Will Weaken Economy

    1. Pingback: » Financial News Update - 07/16/09 NoisyRoom.net: Where liberty dwells, there is my country…

    2. Spiritof76 says:

      Medicare which is a government health care is going bankrupt. Many doctors are refusing to accept Medicare patients. Why in the hell do we think that expanding government health care to others will be any better? I am so amazed that American people are really that stupid that they don't see what is in front of them.

    3. GLENN BUNCE GRAND J says:



    4. Lisa, Massachusetts says:

      I do not think it is all uneducated Americans, we have many many immigrants in this country. The people paying their premiums for health care will be burdened even more. Small businesses will suffer even more and might not be able to withstand the requirements. The legislators sure know how to spend the citizens money. I wish they would make the logical and educational decisions we vote them in to do. I live in Massachusetts and the cost was tripled when they mandated the state and everyone to have health care. There is a solution, but it should not cost enourmous amounts to pass a bill, that they are not keeping simple!!

    5. Pingback: Fix Health Care Policy | Morning Bell: Obamacare Is An Economy Killer

    6. Stirling, Huntingdon says:

      I submit the goal is not really to help the uninsured it's more designed to crush the private sector into submission. Once the government owns everything it's "Game Over." This is just one of the steps on the way to socializing the entire private sector. Why would anyone appoint "Czars" if they weren't talking of remaking America into a Comunist country?

    7. David Reynolds, Lexi says:

      There is another issue completely overlooked by conservatives, as well as the press. It is this. The stability of a large complex democracy is dependent on enacting major legislative reforms piecemeal over several years. This allows the electorate to adjust and understand the direction the country is moving. Health care reform, if it is to be meaningful, fully accepted and with health providers making the necessary changes, must be done this way. The president's rush to judgment/lower cost justification is beginning to blow up. Our democratic institutions are working. Let us be thankful. Let us do it slow & do it right.

    8. Carl, Ohio says:

      We do not have a health care crisis- The crisis is how we use the health care system. We as Americans want everything, but want someone else to pay for it.

      We are overweight or obese, diabetic, hypertensive, drink and eat toomuc and the wrong foods. We do not exercise and have created an economy where you cannot walk to get your basic daily needs.

      We rank low in world health ratings, 36. Italy is # 2. we spend 8k per person per year on health care, Italy 2.2 K.

      80 % of the health care dollars are spent on 20 % of the people.

      The issue is not insurance, but how to get us to eat, live and think healthy. all the insurance coverage does nothing for this. We also must stop advertising on health care remidies- the ore you advertise, the more you sell and the coastlyer it gets.

      As for medicare, up the deductable to 25%. This will save many billions and get people to take a greater coast in their decision to use an insurance benefit. We should also tax all paid health care benefist above a baseline established by congress.

    9. Marlo Andersen, Prov says:

      In all of this hoopla over a grand nationwide heathcare insurance program I am not hearing anything about how congress is going to make sure they are exempt. I know this is utopian thinking, but what we need is for Congress to have to personally live with the programs they shove off on to us. Then we would see some real change for the better. Until then our aristocracy will live in their private little world (at our expense) and we will have to settle for the crumbs they let fall off their table.

    10. steve, NY says:

      If Obama's health plan is so great, why has congress excluded themselves in the draft plan?

    11. Pingback: CBO: Obama Health Plan Will Weaken Economy

    12. Tom, Novi, MI says:

      Lets just print more money everytime we need to fix a problem.

      The problem is government of the last 25 years has been no government, but merely spoiled employees.

    13. Pingback: Bill Scher: Conservatives … You Can’t Handle The CBO! | Obama Biden White House

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