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  • Obamacare Will Break the Bank, Not Cut the Deficit

    The White House and its congressional allies are trying to suggest that the latest Congressional Budget Office (CBO) cost estimate proves that their health-care plan is fiscally responsible.

    But, in fact, the latest CBO projections confirm — again — that the President’s health plan would pile more another unfinanced entitlement program on top of the unaffordable ones already on the federal books.

    According to CBO, the new entitlement spending in the plan would cost $216 billion by 2019, and then increase by 8 percent every year thereafter. In other words, the President’s plan would stand up another health entitlement program that will grow much faster than the nation’s economy or revenue base. The changes the Democrats would make to the Senate-passed bill would make the entitlement program even more expensive.

    Over a full ten years of implementation, the cost of the new entitlement spending would reach $2.5 trillion, at least, not $1 trillion as advertised by the White House.

    The President and his congressional allies have suggested that the offsets they are pushing will more than cover this massive spending increase. But even a modest amount of scrutiny reveals these supposed offsets are nothing more than gimmicks and implausible assumptions.

    For starters, the plan doesn’t count $371 billion in spending for physician fees under the Medicare program. The President and Congressional Democrats want to spend this money, for sure. They just don’t want it counted against the health bill. That’s because they want to reserve all of the Medicare cuts in the bill as offsets for another entitlement instead of using them to pay for the problem that everyone knows needs fixing. The President says he shouldn’t have to pay for the “doc fix.” But why not? Never before did congress move to add the cost of a permanent fix to the national debt. But that is exactly what the President now wants to do. When the cost of the “doc fix” is properly included in the accounting, all of the claimed deficit reduction from the President’s health plan vanishes.

    Then there’s the “Cadillac” tax on high-cost insurance plans. Because of union pressure, the President pushed the tax back to 2018, well passed the point when he will have left office. But once in place, he now would allow the threshold used to determine “high-cost” to rise only with the CPI, beginning in 2020. That means a very large segment of the middle class would get hit with the tax as the years passed. The President has shown that he is unwilling to actually collect this tax. But he wants us to believe we can count on a huge revenue jump over the long-run because his successors will have more stomach for it than he does.

    Similarly, to jury-rig “long-term deficit reduction,” the latest plan would first increase the premium assistance subsidies paid to low and moderate wage families above the levels in the Senate-passed bill, but then index their value to something below the growth in premiums to give the appearance of deficit reduction in the decade after 2019.

    There’s no “bending of the cost-curve” here. It’s sleight of hand that, if actually implemented, would force millions of low-income families to pay ever higher premiums every year. The Democrats don’t want to talk about that. They just want to pretend they have been serious with fiscal discipline.

    The other gimmicks remain in the plan as well. The double-counting of premiums for a long-term care insurance programs an offset for the health entitlement spending. The assumption that congress will allow Medicare reimbursement rates to fall so low that one in five hospitals and nursing homes might be forced to stop taking Medicare patients. And the expectation that somehow congress can hand out generous new subsidies to those getting insurance through the exchanges, even though many tens of millions of others with the same resources would get no additional help for their job-based coverage.

    The bottom line here has been clear for months. The bill being pushed by the President would take what’s already a very bleak budget outlook and make it much, much worse.

    Cross-posted at The Corner.

    Posted in Obamacare [slideshow_deploy]

    32 Responses to Obamacare Will Break the Bank, Not Cut the Deficit

    1. Doug, TN says:

      Back during the emergency to pass health care reform back in October '09, it was clear that the special interested that infect both parties would only allow a health plan that is nearly guaranteed to bankrupt the United States. Dr. B. predicted this outcome back then in this related article: http://www.truthsavvy.com/content/bipartisan-spec… (or: http://bit.ly/ULv1B)

    2. Ric, Lawton OK says:

      Can ONE GOP or talk show host point out the OBVIOUS when Pelosi or some Democrats say “the Republicans are defending the HC companies!”

      The facts:

      - Democrats cut a deal with health insurance lobby back in May just like they did with pharma! The Democrats are the buddies of insurance!

      - The democrats are giving the insurance firms 2.5 trillion in tax subsidies and 6 trillion in higher premiums plus 30 million customers who have to pay or go to jail (which is completely Unconstitutional)! Can someone please tell me if you want to “curb abuses” how handing them 8 trillion in unearned money and 30 million new customers is “making evil insurance pay”?

      - The democrats are creating a monoploy market for 5 or 6 largest insurance firms (the other 1400 odd will be mereged or bankrupted)

      Now the Democrats get “theirs” for these goodies – they get to run HC THRU the insurance firms via regulation and control of their $$$…

      This is a CORRUPT bargin – govt HC imposed for a huge amount of $$$$!

      This is FACISIM pure and simple – private mangement/profit but govt/politcal control….

      We should defend free markets and the concept of insurance – we dont need to defend or remain silent on these absurb attacks!

    3. Jan Metairie LA says:

      Everyone seems to agree on this except Democarts!

    4. David S., Fort Worth says:

      This "magician's" trick is absolutely inexcusable. Lies upon Lies. I don't hear the outrage at being taxed for many years without any benefits. How many Americans would pay the grocery store, electric company, or water bill for years without receiving any service or benefits. It's like buying a new car and paying on the loan for years and never ever getting to drive it until it is payed for. And then finding out that the car should have been traded in with the "cash for clunkers" program. This madness is straight out of a fiction novel.

    5. Rick says:

      If taxes and fees are raised fast enough and often enough, the effect of Health Care Reform on the Federal deficit may not be as detrimental as some envision.

      But … but … but … if taxes and fees minimize the hit to our Federal budget, they will hit OUR budgets, OUR state budgets, OUR capital gains, and OUR employers (who pay OUR paychecks).

      What does the CBO say about that????

    6. Kathleen says:

      We can't remain silent and this is much too important to "sit it out". So with that being the case, we are going to "sit in". This rally will be in opposition to the health care bill that the House is set to vote on. The vote is to be held sometime Sunday after 2:00pm.

      The plan?

      - Surround the Capitol beginning at 12:00pm on Saturday, March 20th. - How long you decide to remain is entirely up to you. - There have been calls to remain throughout the night and into Sunday. If other members feel so strongly as to do this, I will pledge to do the same, hence the "sit-in". - A large number of other groups have comitted to being there as well. - We are truly in battle to defend our Constitution. Please consider attending.

      If you have decided to go and want to get together with other members of our group, click on the members part of our site, find me and send an email. I will do my best to coordinate everyone together.

      Thank you all for your comments and suggestions. In Liberty! The Central Maryland 9-12 Project

    7. Tim AZ says:

      Once again if anyone has been paying attention. Since liberals have captured DC everything they have done has by design been to collapse the Capitalist System. There is no other way they can install their socialist utopia. You will either take the horse pill or the suppository. Unless of course you wake up and fight with everything you have.

    8. Dale Cord Redondo Be says:

      THE LETTER EVERYONE IS TALKING ABOUT

      This has to be the email forward of the year! Please take a few minutes to read and absorb just what this woman had to say, and then hopefully everyone will pass it to their entire mailing list, and theirs to theirs until it circles the nation! Time is short and arrogance, stupidity and ignorance abound…

      The following letter read on Glenn Beck 's show, is rapidly circulating around the country. Americans everywhere identify with this 53-year-old woman.. She has given us a voice. Once you read this, you will want to forward it to all of your friends…

      GLENN BECK: I got a letter from a woman in Arizona . She writes an open letter to our nation's leadership:

      "I am a home grown American citizen, 53, registered Democrat all my life. Before the last presidential election I registered as a Republican because I no longer felt the Democratic Party represents my views or works to pursue issues important to me. Now I no longer feel the Republican Party represents my views or works to pursue issues important to me. The fact is I no longer feel any political party or representative in Washington represents my views or works to pursue the issues important to me. Instead, we are burdened with Congressional Dukes and Duchesses who think they know better than the citizens they are supposed to represent.

      There must be someone. Please tell me who you are Please stand up and tell me that you are there and that you're willing to fight for our Constitution as it was written. Please stand up now.

      You might ask yourself what my views and issues are that I would feel so horribly disenfranchised by both major political parties. What kind of nut-job am I? Well, these briefly are the views and issues for which I seek representation:

      One, illegal immigration. I want you to stop coddling illegal immigrants and secure our borders. Close the underground tunnels.. Stop the violence and the trafficking in drugs and people. No amnesty, not again. Been there, done that, no resolution.

      P.S., I'm not a racist. This is not to be confused with legal immigration.

      Two, the STIMULUS bill. I want it repealed and I want no further funding supplied to it.. We told you No, but you did it anyway. I want the remaining unfunded 95% repealed. Freeze, repeal.

      Three: Czars. I want the circumvention of our constitutional checks and balances stopped immediately. Fire the czars. No more czars. Government officials answer to the process, not to the president. Stop trampling on our Constitution, and honor it.

      Four, cap and trade. The debate on global warming is not over. There are many conflicting opinions and it is too soon for this radical legislation. Quit throwing our nation into politically-correct quicksand..

      Five, universal healthcare. I will not be rushed into another expensive decision that will burden me, my children, and grandchildren. Don't you dare try to pass this in the middle of the night without even reading it. Slow down! Fix only what is broken — we have the best health care system in the world — and test any new program in one or two states first.

      Six, growing government control. I want states rights and sovereignty fully restored. I want less government in my life, not more. More is not better! Shrink it down. Mind your own business. You have enough to take care of with your real [Constitutional] obligations Why don't you start there.

      Seven, ACORN. I do not want ACORN and its affiliates in charge of our 2010 census. I want them investigated. I also do not want mandatory escrow fees contributed to them every time on every real estate deal that closes — how did they pull that one off? Stop the funding to ACORN and its affiliates pending impartial audits and investigations. I do not trust them with taking the census with our taxpayer money. I don't trust them with any of our taxpayer money. Face up to the allegations against them and get it resolved before taxpayers get any more involved with them. If it walks like a duck and talks like a duck, hello. Stop protecting your political buddies. You work for us, the people. Investigate.

      Eight, redistribution of wealth. No, no, no. I work for my money. It is mine. I have always worked for people with more money than I have because they gave me jobs — and that is the only redistribution of wealth that I will support. I never got a job from a poor person! Why do you want me to hate my employers? And what do you have against shareholders making a profit?

      Nine, charitable contributions. Although I never got a job from a poor person, I have helped many in need. Charity belongs in our local communities, where we know our needs best and can use our local talent and our local resources. Butt out, please. We want to do it ourselves..

      Ten, corporate bailouts. Knock it off. Every company must sink or swim like the rest of us. If there are hard times ahead, we'll be better off just getting into it and letting the strong survive. Quick and painful. (Have you ever ripped off a Band-Aid?) We will pull together. Great things happen in America under great hardship. Give us the chance to innovate. We cannot disappoint you more than you have disappointed us.

      Eleven, transparency and accountability. How about it? No, really, how about it? Let's have it. Let's say we give the buzzwords a rest and have some straight honest talk… Please stop trying to manipulate and appease me with clever wording… I am not the idiot you obviously take me for.. Stop sneaking around and meeting in back rooms making deals with your friends. It will only be a prelude to your criminal investigation. Stop hiding things from me..

      Twelve, unprecedented quick spending. Stop it now.

      Take a breath. Listen to the people. Slow down and get some input from nonpoliticians and experts on the subject. Stop making everything an emergency. Stop speed-reading our bills into law. I am not an activist.. I am not a community organizer. Nor am I a terrorist, a militant or a violent person. I am a parent and a grandparent.. I work. I'm busy. I am busy, and I am tired. I thought we elected competent people to take care of the business of government so that we could work, raise our families, pay our bills, have a little recreation, complain about taxes, endure our hardships, pursue our personal goals, cut our lawn, wash our cars on the weekends and be responsible contributing members of society and teach our children to be the same all while living in the home of the free and land of the brave.

      I entrusted you with upholding the Constitution. I believed in the checks and balances to keep from getting far off course. What happened? You are very far off course. Do you really think I find humor in the hiring of a speed reader to unintelligently ramble all through a bill that you signed into law without knowing what it contained? I do not.

      It is a mockery of the responsibility I have entrusted to you. It is a slap in the face. I am not laughing at your arrogance. Why is it that I feel as if you would not trust me to make a single decision about my own life and how I would live it but you should expect that I should trust you with the debt that you have laid on all of us and our children. We did not want the TARP bill… We said no. We would repeal it if we could. I am sure that we still cannot. There is needless urgency and recklessness in all of your recent spending of our tax dollars.

      From my perspective, it seems that all of you have gone insane. I also know that I am far from alone in these feelings. Do you honestly feel that your current pursuits have merit to patriotic Americans? We want it to stop. We want to put the brakes on everything that is being rushed by us and forced upon us. We want our voice back. You have forced us to put our lives on hold to straighten out the mess that you are making. We will have to give up our vacations, our time spent with our children, any relaxation time we may have had and money we cannot afford to spend on bringing our concerns to Washington . Our president often knows all the right buzzwords like unsustainable. Well, no kidding. How many tens of thousands of dollars did the focus group cost to come up with that word? We don't want your overpriced words. Stop treating us like we're morons.

      We want all of you to stop focusing on your reelection and do the job we want done, not the job you want done or the job your party wants done. You work for us and at this rate I guarantee you not for long because we are coming. We will be heard and we will be represented.. You think we're so busy with our lives that we will never come for you? We are the formerly silent majority, all of us who quietly work, pay taxes, obey the law, vote, save money, keep our noses to the grindstone… and we are now looking at you.

      You have awakened us, the patriotic freedom spirit so strong and so powerful that it had been sleeping too long. You have pushed us too far. Our numbers are great. They may surprise you. For every one of us who will be there, there will be hundreds more that could not come. Unlike you, we have their trust. We will represent them honestly, rest assured. They will be at the polls on voting day to usher you out of office.

      We have cancelled vacations. We will use our last few dollars saved. We will find the representation among us and a grassroots campaign will flourish. We didn't ask for this fight. But the gloves are coming off. We do not come in violence, but we are angry. You will represent us or you will be replaced with someone who will. There are candidates among us who will rise like a Phoenix from the ashes that you have made of our constitution.

      Democrat, Republican, independent, libertarian. Understand this.. We don't care. Political parties are meaningless to us Patriotic Americans are willing to do right by us and our Constitution, and that is all that matters to us now.. We are going to fire all of you who abuse power and seek more. It is not your power. It is ours and we want it back. We entrusted you with it and you abused it. You are dishonorable. You are dishonest.. As Americans we are ashamed of you. You have brought shame to us. If you are not representing the wants and needs of your constituency loudly and consistently, in spite of the objections of your party, you will be fired. Did you hear? We no longer care about your political parties. You need to be loyal to us, not to them.. Because we will get you fired and they will not save you.

      If you do or can represent me, my issues, my views, please stand up. Make your identity known. You need to make some noise about it. Speak up. I need to know who you are. If you do not speak up, you will be herded out with the rest of the sheep and we will replace the whole damn congress if need be one by one.

      We are coming. Are we coming for you? Who do you represent? What do you represent?

      Listen. Because we are coming. We the people are coming.

    9. Virginia says:

      The Dems and others like to say "we can't do nothing." which of course, is not true; but when did they ever let the truth get in the way? We CAN do nothing and then, take the time to pass health care reform on a incremental basis that would allow improvements to be tested in different areas – to see how they will or will not work. There's no need to destroy the worlds best health care system and create a new entitlement monster.

      Unfortunately, Obama's ego will not permit this approach. He has a need to transform healthcare the way FDR did and create a similar Ponzi scheme just like FDR did. IMO the media are the biggest evil in this mess – they should have done their job and reported on obama's lack of experience, socialist upbringing and the socialist atmosphere he has surrounded himself in for his whole life. The main stream media are 99% to blame – and they still don't get it for the most part.

      Once the US is destroyed I wonder who will become the super power? The Chinese? India? Iran?

      In any case, it won't be pleasant –

    10. Ben C. Ann Arbor, MI says:

      Didn't I once hear Democrats complain about Republican "voodoo" economics. Congress teaches them well. Its all smoke and mirrors.

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    13. Dapper O,Lafayette,I says:

      Local liberals like Sue Render has believed the lies that this will cut the deficit.500 billion of the porkulus has yet to be spent.It was written along time ago:THE BORROWER IS THE SERVANT TO THE LENDER.Why doesn t that liberal in the oval office take out and destroy the largest insurance company which he is head of?

    14. Drew Page, IL says:

      Like many of his supporters, President Obama believes that as long as there are checks in his checkbook, he has money to spend. Unfortunately, that leaves the rest of us to pay for his overdrafts.

      Isn't it ironic that the federal government has passed laws that assign fiduciary responsibility to individuals who sit on boards of directors of publically held companies or corporations, or who are Trustees of a Taft-Hartley Trust, making them individually financially responsible for actions they take? Such laws include a "prudent man" rule that requires board members and trustees to act financially responsible as any prudent man, when it comes to spending and investing assests of the corporation or Trust. If the trusttes of a Health & Welfare Trust were to make bad investments (such as loans from a pension fund) that caused financial losses to the beneficiaries of that Trust, they could have their personal assets and wealth seized to recover Trust losses and the trustees themselves could face jail time. Why aren't the President and members of Congress held to these same standards?

      Presidents love to say "The buck stops here." and "I accept full responsibility for my decisions". But what does that really mean? Does the politician who says this ever wind up in jail and/or having his total wealth confiscated? The answer is a resounding NO. If a President and Congressmen, through bad decisions, wind up bankrupting the country, what good does the phrase "the buck stops here" do anyone. That President, and those Congressmen after leaving office, would still wind up with a tax supported lifetime pension and go on to make millions giving speeches. When a President and Congressmen tell the American people that the legislation he supports will cost only so much, they should be prepared to put up more than lip service. They should say "If this legislation costs more than we said it would, we will forefit our government pensions and our personal wealth." That would be putting THEIR money where their mouths are. This is only fair since they don't mind at all putting OUR money where their mouths are.

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    18. Thomas Downey, Fort Walton Beach, FL. 32548 says:

      Our government is in corrupt shambles due to the decisons and events that are now outof control of rational, freedom loving, true patriaotic Americans.
      How long do we have left before our democracy and civilization will cease to exist? A democracy will continue to exist up until the time that voters vote themselves generous gifts from the public treasury, with the result that every democracy will eventually collapse due to unsustainable fiscal policies which is always followed by some form of dictatorship.
      The average age of the world’s greatest civilizations from the beginning of history, has been 200 years. America is 234.

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    28. jack, milan says:

      As a european, it seems that Obamacare is going to turn govt money into the private insurance to get universal care guaranteed. Just the opposite than in Europe, where the nations pay a public health system where govt controls both money flow and final result.

      Obama will pay with public money private health companies to give universal care by a law predictment, but without a chance to say a word on how these companies will use that money. it's dangerous, because a public firm is built not to have profit, but a private one lives also for profit.

      The main risk is that profit will survive as before, but because of an enlarged health care to deserve with rising cost, the quality of service will be going to be cut. I think You can't have a public service by private companies payed with public money, because it leads to oligopoly and politics mixed executives, which could be even worse than lobbying in Congress.

      It's true that health care system in USA today is leading to a financial default, 'cause it's too expensive for the tangible result, but this law will keep private profit without real less spending, and no assurances of lower fees for privates. something's going fool…

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