Guest Blogger: Rep. Bill Cassidy (R-LA) on How Baucus Bill Raises Costs

Posted October 13th, 2009 at 11.20am in Health Care.

Lost in the glowing coverage of the Congressional Budget Office’s “favorable” estimate of Sen. Max Baucus’ health care bill is an astounding fact: it doesn’t lower health care costs.

Although the Congressional Budget Office estimates says the bill will reduce the deficit by $81 billion, CBO also says, “Cost is growing at about 8% per year toward the end of the 10-year budget window.” If you take that 8% inflation rate and compound it over 10 years, it means that health care costs will MORE than double every decade. This is as bad – or worse – than the status quo.

Equating deficit projections with health care inflation, as many in the press have done, reveals a serious misunderstanding of the issue. If the goal of health care reform is lowering the deficit, then any tax hike or spending cut will do. But if the goal of health care reform is lowering health care costs, then proposals should be judged on whether or not they accomplish that goal. Sen. Baucus’ bill does not.

As the Heritage Foundation rightly points out, the Baucus bill’s alleged savings only appear after $228 billion in tax hikes. In addition to those tax hikes, there is a $33 billion unfunded Medicaid mandate and $240 billion in cuts to doctors who serve Medicare patients. It’s fiscal sleight of hand, not fiscal responsibility. And that’s no victory.

The views expressed by guest bloggers on the Foundry do not necessarily reflect the views of the Heritage Foundation.

Author: Rep. Bill Cassidy
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14 Comments

October 13, 2009 jim smith writes:

Our Congress is running out of snake oil, but not out of snake oil salesmen and women. They seem to breed them on a daily basis. What they have in common includes lying, obfuscating, parsing, more lying, deception, fabricating (even more lying)and poor arithmetic skills. Pretty soon laws will be enacted by some clown going to the floor of the Senate/House and start with, “I’m thinking about having law that collects taxes from dead people. Let’s vote now!”

October 13, 2009 Freedom of Speech, TX writes:

They may not collect taxes from the dead but I believe I read something about one of the Czar’s wanting to ensure the govt could have body parts for transplants (even if not explicitly agreed upon by the donor).

October 13, 2009 Janet Barker, ORegon writes:

It is time for you and yours to get on board with the majority of Americans and vote for a true public option. We are watching all of you. Your words, your votes, will tell us whether or not you care about our health and our country. Fail us at your peril.

October 13, 2009 Janet Barker, ORegon writes:

I don’t expect a response to my comment. The Heritage Foundation is well-known as a very right-wing group. You never respond to criticism.

October 14, 2009 Ben West, Laurel, MS writes:

I’ll respond, Janet. I’ll respond with a question. Please, won’t you tell me where I can find the polling data that shows a majority of Americans in favor of the public option? By the way, the public “option” is only optional for a little while. It then becomes mandatory. Not to mention that no reasonable businessman, except for some ideologues, maybe, would opt to continue providing insurance to his employees when the government will do it for him, and tax him if he doesn’t let them do it for him. Now show me the polling data which shows a majority of Americans in favor of being forced into a socialist, nationalized healthcare system. I know you won’t, because those data do not exist, Janet. Thanks for playing. We have some nice parting gifts for you. No we don’t.

October 14, 2009 sandra price, leawood, ks writes:

I’m with Janet. The question isn’t whether this bill costs more than the current health care scheme, or will cost more or less in the future. The question is whether the bill will alleviate the many devastating problems of the current “private” option. Our health care system should be about creating health for the American people, not wealth for the health care industries.

October 14, 2009 Jill, California writes:

Anyone who believed Obama wouldn’t raise taxes wasn’t paying attention during the campaigns. The evidence was so clear that even the blind could see it.

First, Obama spent money recklessly during the campaigns. It was obvious that he would continue to do so if he were elected. And considering how easily the Koolaid drinkers threw money at him, he was bound to assume that Americans would continue to open their wallets in response to every empty promise he made.

Second, it was clear that he wasn’t a man of his word. How many times did he say, “I welcome that debate with John McCain.” Yet when McCain asked to debate him, Obama refused. He even refused to debate Clinton. Did we need more evidence that he wasn’t bipartisan and wasn’t a man of his word?

I fear our nation has been taken over by forces more evil than al Qaeda.

October 14, 2009 John Roane Sarasota, Florida writes:

It’s redundant to say Baucas bill raises cost. All US Congress bills raise cost to the tax payer. Just the fact that there is a US Congress raises cost.

Anyone who feels they are getting something free from the US Congress is a fool, US Congressman or an illegal alien.

October 15, 2009 Ron Hansen writes:

Janet Barker respectfully fro Ron Hansen.

A “True Public Option” would be one in which the government steps aside and allows insurance transactions to be between the providers and the purchaser. They would then decide how much and what type of coverage and agree on a price. Currently the government dictates where each company can sell, the coverage and portability. That’s no option.
Then, each patient would be negotiating with the physician (healthcare provider) one on one for the type care at an agreed upon cost, not government bureaucrats and bureacracies setting rules and cost.
Your “Public Option” is government run and ruined insurance and healthcare.

October 15, 2009 Dave Chelsea, MI writes:

Janet - you are absolutley wrong when you state the “majority of Americans” want a “true public option”….EVERY Poll indicates just the opposite.

October 15, 2009 LW, Newport News VA writes:

Sadly, the government DOES collect from the dead—can anyone say, “inheritance tax.” The living may pay it, but they don’t get to use any of the money the deceased accummulated UNLESS they pay the tax.
As for a public health plan being supported by “the majority of Americans,” (Janet in Oregon), have you seen or read the latest polls? Even CNN, not a “right-wing group,” lists 54% Americans AGAINST the public option.
Most of us understand that if we adopt socialized medicine (and yes, it IS socialism), we will end up looking like Britain.
Britain has staggering taxes, little economic growth, if any, and most citizens have a substandard of living as compared to Americans. There is a reason we live better over-all than most citizens of other countries. It is called freedom to chose in the marketplace as well as the freedom to excel.
We have the best healthcare system in the world with the most innovations, all because it is a FREE enterprise system. Yes, our current system may have some flaws, but you do not correct them by tossing the whole system on its head. We are inviting disaster by adopting a public system, as many in Britain are trying to tell us. They are not basing their caution upon ignorance, but knowledge of what such a system can do to a country after decades.
Try waiting a year or more for care, as most patients in Britain do, or how about no care at all, as breast cancer victims have discovered? Don’t say such things cannot happen here, since we will run our system better as some advocates claim. I would laugh if these consequences of a public option were not so tragic.

October 15, 2009 Charlotte, Memphis writes:

Janet, I think you need to get aboard with the majority of Americans that want our Health Care left alone. We don’t want public option, we don’t want the government in our lives any more than it already is. This bill that is being passed will cost us all so much more money and still 15 to 20% of the people will not be covered, so how has this helped? If Congress and your President were to go on this Health Bill, as we are all having to go on it, then you would see a big difference in what would be passed, but we are just the little people and Congress will not listen to the majority, they are going to pass what they want to.

October 15, 2009 Jerry from Chicago writes:

Janet Barker — I respect your right to voice your opinion, just as I hope you will respect mine in saying you couldn’t be more wrong. While the majority of people (note I said people, not Americans) without health insurance want national health care, paid for by everyone else, the majority of Americans who do have health insurance do not want national health care.

Yes, Americans are content with Medicare, even though Medicare itself does not pay a majority of health care expenses. The vast majority of Americans that are on Medicare also buy Medicare Supplement coverage from commercial insurance companies in order to fill in the gaps in coverage that Medicare does not pay.

If you are so concerned about those without health insurance, I suggest you go out and adopt a couple of them. Then you can provide for all of their needs like food, clothing, housing and education. You can also be financially responsible for the needs of their children as well. It’s your right to do that. I would salute you for doing that and declare you a wonderful, generous person.

There are many of us out here having a tough enough time supporting ourselves and our own families. Who can’t and don’t want to support someone else’s family, especially if they are here illegally or choose not to pay for such coverage themselves. You may feel sorry for those who don’t have health insurance. You may pity them. But that doesn’t mean that the rest of us should have to pay for your feelings of pity and guilt.

October 15, 2009 Ron Hansen writes:

I called both my U.S. Senators and my Rep. today imploring them to consider what they want to do. (Unfortunately all my Federal representation is democrat.)
I explained to the people on the phone what the majority of Americans fear. An explosion in costs and a reduction in quality care.
Add to that the insanity of Cap and Trade legislation which taxes us for emitting a natural gas and penalizes us for using our own coal, oil, natural gas and nuclear facilities and you have the makings of a real debacle.
I can only hope that we keep the pressure on and defeat the idiocy afoot in Washington.

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