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  • The True Cost of the House Health Bill: $1.5 Trillion


    Nancy Pelosi has unveiled the new health care bill in the House after merging together three different versions of legislation. To appease moderate Blue Dog Democrats and to meet President Obama’s oft-stated promise that reform wouldn’t cost more than $900 billion in the first ten years, Speaker Pelosi sought to reduce the $1.5 trillion total cost of the bill. Newsflash: she failed.

    The Congressional Budget Office released its preliminary score of the bill and the media have been reporting its cost as $894 billion. But this is the net cost of the coverage provisions only—the gross cost of these coverage provisions is $1.055 trillion dollars.

    Additional spending in the bill not related to coverage and the cost of the “doc fix” brings the total to about $1.5 trillion. So, Speaker Pelosi is essentially right back where she started—with a huge 2,000 page plan that carries a hefty price tag.

    Donald Marron, former acting director of the Congressional Budget Office, calculates that through a variety of provisions there is about $217 billion in additional spending in the House bill that is not related to the coverage provisions. The additional spending in the House bill brings the total cost of the bill to $1.273 trillion, or almost $1.3 trillion in a ten year budget window.

    And let’s not forget the infamous “doc fix” which prevent cuts in Medicare payments to physicians that would otherwise automatically take effect under the “sustainable growth rate formula” (SGR). Despite the Senate’s unsuccessful attempt to pass a permanent fix without paying for it, the House legislation also attempts to pull out the same $245 billion dollar provision from the legislative package to create the illusion that the price tag of the legislation is lower than it really is. The American people saw this budget gimmick before when it was tried in the Senate, who do the House leaders think they are fooling?

    The House bill costs more than the President’s $900 billion dollar promise and its costs are in excess of $1 trillion. All told, the true cost of “reform” legislation is still more than $1.5 trillion in the first ten years. And since most of the spending in the bill does not kick in until 2013 or later, that’s not even a full10 year cost estimate.

    Posted in Obamacare [slideshow_deploy]

    15 Responses to The True Cost of the House Health Bill: $1.5 Trillion

    1. Pingback: Not $1.2 Trillion…$1.5 Trillion

    2. Sandra McKinnon, Sfl says:

      This is not something we need and our representatives should listen to us and vote NO.

    3. Pingback: Health Reform Scam » True Cost of the House Health Bill: $1.5 Trillion

    4. William Snavely - Sa says:

      Not needed, county cannot afford it – not emphasized enough in critiques is the current impact on our budget – over half (and growing) of every new dollar appropriated is a borrowed dollar – adding to the current and almost certainly to our future debt – foecast of debt 10 years out is – meaningless – is misleading – merely affords politicians cover for current irresponsible actions – and in my opinion a violation of their Fiduciary Reponsiblities – to Taxpayers.

    5. OldSailor says:

      Coincidence or not? Harry Reid announces a slow down in bringing the "reform" bill to the floor to debate just as Obama's policies are rejected by NJ and VA by the electorate. Reid is just attempting to buy time and distance from the past election before he plots his next scheme. The Democrat party is trying to ram this legislation down our throats and up our a$$es. Get vocal and contact your legislators with your displeasure about the direction of the current rubber-stamp congress. It is past time to stop the "Whatever Obama wants, Obama gets" mentality.

    6. Key, Bedford, VA says:

      Working Americans need to put AMERICA first, not party. Responsible citizens have curbed spending, it's time our government folks do the same. Call your representative to vote NO on this government run proposal….just look at the corrupt and mismanaged record of government run programs!!!!

    7. Jerry Heyen, Fergus says:

      We have been lied to buy both sides of the isle on the health bill, I suggested a no vote.

    8. Pingback: Yes, $2.6 Trillion! A Closer Look at the Full 10 Years of Spending in the House Health Bill : Conservative Blog: Urban Conservative 2.0 – Conservative News & Politics

    9. Pingback: Big Government » Blog Archive » Historic PelosiCare Debate Starts Right Now

    10. Pingback: Yes, $2.6 Trillion! A Closer Look at the Full 10 Years of Spending in the House Health Bill | Fix Health Care Policy

    11. Pingback: Yes, $2.6 Trillion! A Closer Look at the Full 10 Years of Spending in the House Health Bill | Conservative Principles Now

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    14. Dan Jones, MD, Eurek says:

      As a primary care physician in private practice, I can assure your the REAL cost will NOT be $1.5 Trillion, but MANY TIMES THAT AMOUNT. Here's why:

      I constantly waste nearly half my time and my staff’s time coping with the suffocating bureaucratic red tape already imposed on our healthcare system by government and insurance companies. But Congress’ cost estimate of the current "reform" only includes the direct impact on government expenses, while totally ignoring the tremendous healthcare industry costs of implementation.

      The current nearly 2000 pages of legislation, if passed, will be ballooned by the various bureaucracies responsible for their implementation into many tens or hundreds of thousands of pages of regulations and requirements to further complicate, consternate, coagulate and constipate the work of virtually everyone involved in healthcare. It is very expensive to implement complex new rules and regulations throughout an industry; it requires imposing many new responsibilities on existing personnel, extensive revision of policies and procedures, and hiring many additional personnel.

      For example, you would be amazed what a massive industry and work force has developed purely to support the requirement for every medical bill to be “properly coded” in order to be paid! Schools all over the country offer degrees in medical coding! These codes contribute absolutely nothing to healthcare quality or affordability. They are purely a tool to allow bureaucrats to micromanage, micro-pay and micro-manipulate doctors’ and patients’ actions, to tremendous net negative effect.

      Even if all these new regulations only increase the cost of healthcare by 5%, that will add another 1.1 trillion dollars of costs over the next 10 years. The true cost is likely to be much greater.

      Dan Jones, MD

      Eureka Springs, Arkansas


    15. Pingback: A Call For Third World Politics - Framing the Dialogue

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