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  • The President's Health Proposal: Further Jacking Up the Cost of Care

    In anticipation of the February 25th health care summit with members of Congress, the President released his proposal for pricey, government-run health care.  The White House estimates the cost of the proposal to be $950 billion over a decade, decreasing the federal deficit.  However, health policy expert James Capretta, a former senior official of the Office of Management and Budget (OMB),  shows in a recent paper that this is not only inaccurate, but far from reality.  Capretta’s research shows that ten full years of implementation of the President’s proposal would cost closer to $2.5 trillion, with the strong likelihood of far exceeding this amount.  Here’s how:

    • The President’s proposal ignores “doc fix” legislation, which would cost roughly $200 billion over ten years.  As Capretta notes, it is ironic that the President does not account for this provision, but includes several other Medicare provisions in his proposal.
    • Non-coverage spending would add about $90 billion to the cost of the bill.
    • Cost estimates for the President’s plan should apply to the ten year window from 2011 to 2020—not to 2019.  This would add approximately $200 billion more to the cost of the bill.
    • The President’s plan includes the CLASS Act, premiums from which are double-counted.  Fixing this adds $72 billion to the cost of the bill.
    • The true ten year window of the bill, including spending reductions, new revenues, and new spending, is 2014 to 2023.  During this period, the Senate bill would cost $2.3 trillion.  Adding the President’s additional provisions, at $75 billion, as well as the aforementioned provisions, arrives at a grand total of over $2.5 billion.

    According to Capretta, the newly created entitlement programs created by the bill are likely to expand over time to include more Americans.  In addition, spending cuts to current entitlement programs have little chance of coming to fruition, as these cuts would put several institutions in financial trouble.    Capretta’s full analysis can be read here.

    Posted in Obamacare [slideshow_deploy]

    3 Responses to The President's Health Proposal: Further Jacking Up the Cost of Care

    1. Bobbie Jay says:

      Please Republicans, don't fall for this. It is outrageous and frivolous. It holds bias and discrimination. It is not COMPETITION HE WANTS! It is TAKE OVER! PERSONAL CONSEQUENCES OF LIFESTYLES NEED NOT BE INCLUDED. NEITHER SHOULD INDIVIDUAL NATIONALITY. SCRAP THE CRAP.

    2. Reader in Tulsa says:

      I think that last number should be 2.5 Trillion, not billion – right? :) Don't even have to publish this comment – I just wanted to notify someone.

    3. Leon, Durango, CO says:

      Health Care in America has not faced a truly free market place for fifty years. Hospitals have competed for obscenely expensive machines with poorer and poorer cost effectiveness, adding billions in costs with little return in quality of care. We pay for so much nonsense we don’t have enough money left over for real medicine. Doctors create histeria and people worship Medical Care. These guys have such great PR (which We pay for) but the truth is they aren’t as good as they promote themselves to be. These costs are more the result of Insurance carelessness, how people get a great many unnecessary services and tests just because they’re insured, when our cheap good old fashioned treatments would do just fine at ten percent of the cost.

      Why don’t you look into Medicine itself, how they have trumped up so much anxiety about health the People are falling for gimmicks. The more Medical Care we get the worse our overall health! Why do our Seniors each take 16 different prescriptions? There is a lot of dishonesty in the medical statistics game, so much so that Pharmaceutical Companies should be outlawed from advertising so many bad new medicines. Madison Avenue is riding on our backs, we have to pay for enough advertising to sell this crap to us, no wonder prescription drug costs are out of sight. We pay for our own brainwashing in America, but that doesn’t help me feel better.

      Don’t make me pay for everybody else’s over use of Medical Services and wacky proportions of value of service.

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