New Study Puts ObamaCare Deficits over $1 Trillion
Posted September 9th, 2009 at 5:26pm in Entitlements, Health Care 
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During tonight’s address to Congress, President Obama is expected to repeat his contention that health care reform should reduce federal health care costs and not expand the budget deficit. The House health bill (as amended by the Energy and Commerce Committee) fails those standards according to a new Lewin Group study commissioned by the Peter G. Peterson Foundation. According to the study, the House bill:
- Would run a $39 billion deficit in the first decade, and a $1,010 billion deficit in the second decade;
- Faces a gross cost (excluding tax increases and Medicare and Medicaid reforms) of $858 billion in the first decade, and $2,893 billion in the second decade; and
- Would raise taxes by $588 billion in the first decade and $1,148 billion in the second decade.
President Obama has engaged in a rhetorical sleight-of-hand by asserting that the House bills’ (alleged) deficit neutrality proves that it meets his standard of not increasing federal health spending. Not only is the House bill not deficit-neutral, the vast majority of its savings are from tax increases. In fact, the bill increases federal health spending by $2.4 trillion over twenty years (and would also likely raise private health spending).
Given the President’s budget proposal of trillion-dollar deficits, as well as the $43 trillion unfunded obligation in Social Security and Medicare, adding another expensive new health care entitlement is completely irresponsible. Any savings in Medicare and Medicaid should go towards reducing these staggering long-term obligations. And the tax increases in this legislation would be in addition to the massive tax increases that many liberals already advocate to close long-term deficits.
Lawmakers should go back to the drawing board and produce health care reforms that actually reduce costs based on real choice, competition and transparency.
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6 Responses to “New Study Puts ObamaCare Deficits over $1 Trillion”
Bill San Antonio TX on September 9th, 2009 at 5:26pm said:
Unless we reform illegal immigration, we can never have an accurate budget – especially with a government controlled option. The numbers will continue to grow as millions more arrive. History proves this.
Do we continue to provide amnesty every 10 years or so? What about the millions who are on waiting lists in countries around the world, waiting their turn to enter legally?
This is not mean-spiritness, it is common sense. And, that is in short supply.
Ronald R Christensen – New Harmony, UT on September 9th, 2009 at 5:26pm said:
I wanted to call and talk to someone at your organization but I cannot find any phone number. I need the true numbers of what is claimed as 47 million w/o health care insurance. How many of those are illegal aliens? How many are people that could afford it but choose not to? How many are in different categories that help to show that the 47 mil is a false number?
I need this information ASAP so I can send off my letter to my Senators, my Representative and all those on my email list that favor our Constitutional Republic.
Thank you for your great work.
Bobbie Jay on September 9th, 2009 at 5:26pm said:
I’ve had a pre-existing condition since 1977, as a young child. Since then I’ve worked for three different companies. I WAS NEVER REFUSED COVERAGE TO HEALTH INSURANCE! THIS IS A LIE! THIS IS A COVER-UP!
Bobbie Jay on September 9th, 2009 at 5:26pm said:
Obama spoke using the terms “our plan.” If this is “our plan,” it is insistent it be written in “layman’s terms” before any vote goes through! We saw what his “plan” consists of. All will infiltrate.
MAS1916 – Denver, CO on September 9th, 2009 at 5:26pm said:
Of course the President states that he will fund most of the program through cost savings in Medicare.
If there were savings to be found in Medicare, why isn’t He making the changes now?
Linda Carlsbad, CA on September 9th, 2009 at 5:26pm said:
Free of cost, government get out of our way. Let the private insurance companies give us more choices, just like Congress has (600). But that would be to easy, Washington couldn’t steal more of our money that way! This is about Washington taxing us more, controling us more. Look at our government run schools, the more we pay, the more the government gets, and the less goes back to the students. This is how health care will be, we will pay more and get less. OUR GOVERNMENT HAS NO CLUE ABOUT BUDGETS. THE ONLY THING THAT THEY CARE ABOUT IS “HOW TO TAX US MORE AND TAKE MORE OF OUR FREEDOM BY EVERYTHING THEY PASS”.