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EDITOR OF REDSTATE

How Health Care Reduces the Deficit

Republicans have been living by the Congressional Budget Office’s numbers and some say the GOP now must die by those numbers.

Not so fast. Above the fold on page one of the Wall Street Journal today is this article that “New Math Boosts Health Plan.” What new math?

The CBO has released numbers on the Senate’s health care plan — never mind that the legislation remains mostly in vapors and key details will not be released until it is too late for a new CBO score. In any event, the CBO projects the Senate health care plan will cost more, but will lower the deficit.

How can a plan go from $774 billion over ten years to $829 billion over ten years and lower the deficit? Exactly in ways Barack Obama said would not happen.

The nonpartisan Congressional Budget Office found the sweeping measure will cover 94% of nonelderly legal U.S. residents, up from about 83% currently. The bill will cut the deficit by $81 billion over the 10-year period, owing to trims in Medicare spending and new taxes.

What? They’re going to cut Medicare and raise taxes? How can that be?

According to Barack Obama in his speech to Congress last month, “The middle class will realize greater security, not higher taxes. And if we are able to slow the growth of health care costs by just one-tenth of 1 percent each year — one-tenth of 1 percent — it will actually reduce the deficit by $4 trillion over the long term.” But the Wall Street Journal tells us

Most of the bill’s funding comes from $404 billion in cuts to Medicare and other government insurance programs that Democrats say will reduce waste but won’t hurt recipients’ benefits. An additional $201 billion comes from a 40% excise tax on particularly generous health-insurance plans levied on insurers. The rest comes from annual fees on insurers, medical-device makers and pharmaceutical companies, as well as a series of other changes to the tax treatment of health expenses.

Those fees are actually taxes — like a tax on breast pumps for nursing moms, etc.

Then there is the “waste, fraud, and abuse” in Medicare. One must first wonder why the Democrats are waiting until now to take care of it. One must then wonder if Nancy Ann DeParle, the women charged with rooting out the waste, fraud, and abuse will be up to the job, considering she has failed every time she tried and then lined her pocket in the private sector by capitalizing on her failure.

COMMENTS

  • bk

    At least that seems to be the Obamacare motto.

    If they could bump up the Obamacare cost to say $1.5 trillion, just think how much more the deficit would go down!

  • itdiehard

    More you send, The more you print, The more you save…

    He reminds me of the blond girl and the check book… Bank calls her that she out of money , She replies that cant be so, I still have checks…

  • rblack198

    Clearly given this passage the answer is a resounding NO. they seem to assume that those with “gold plated” health plans will keep them in spite of the fact that 40% get taxed. Most rational folks buy less of something when the price goes up 40% no matter what it is.

    “An additional $201 billion comes from a 40% excise tax on particularly generous health-insurance plans levied on insurers.”

    Then again I guess we increased taxes on tobacco to pay for healthcare “FOR THE CHILDREN!!!” and on the otherhand pay for programs for people to quit smoking.

  • http://hillbillypolitics.com Steph C

    Let me see if I have this straight.

    They’re going to tax the bejeesus out of us and allow us to have reduced quality health care than we’ve previously experienced?

    And in return, we are granted the privilege of supporting their never-ending spending binge?

    Does that sum it up about right?

  • billyd

    So exactly where do the cost cuts for the actual medical care come from? That’s great that insurance is going to be “Cheaper” but exactly how does this bill cut the cost of providing the medical care? How does it lower a hospital’s cost? How does it lower a doctor’s cost? Or are we just going to lower their payements to the point where doctors and hospitals actually lose money by treating a patient.

    In order to cut Medicare costs, you have to do one of three things…. Eliminate all the waste (This could be done right now. No legislation needs to be passed to do it). Cut the amount Medicare pays doctors and hospitals for services. Or, cut the services that are actually covered.

    One more thing… When do the taxes in the bill kick in? The benefits don’t kick in for 3 years. So is the 81 billion in deficit reduction assuming that we’ll have 3 years of tax revenue without a full program? And if so, do they plan on shutting the program down for 30% of the time every decade?

  • Richard Mullins

    that they want to hear. Really, people can see taxes from a long way off but these idiots won’t say anything about higher taxes because it a killer issue.

  • billyd

    Do you know who has those “Gold Plated” health plans? Government and Union Employees!
    Government employees will keep getting their plans by the local, state, and federal governments raising taxes to pay for them.
    Union Employees will either drive the company they work for under, or drive the price of the goods they produce to the point where the company is no longer competitive and goes out of business due to it. Unless of course, the Government decides to bail them out with more tax payer dollars.

  • izoneguy

    http://www.politicsdaily.com/2009/10/08/health-care-speechwriter-for-edwards-obama-and-clinton-doesnt/

    If Congress and the president want to fix health care, then it is time to start over. They need to look at what’s worked and what has failed in Massachusetts. They are going to have to actually take former Gov. Sarah Palin’s advice and “look north to the future.” Who knew that would ever make sense? But if we continue on this current path without looking, it’s easy to diagnose what’s coming to the country when a health care bill passes.

    A mess.

    Wendy Button has written for John Edwards, Hillary Clinton, John Kerry, Barack Obama, and Mayor Tom Menino of Boston as well as other national and international leaders, and is working on a book.

  • wgsampson

    What would happen if everyone told the government to get lost? We won’t buy insurance privately or from the government. We will just pay the fine and show up to the ER on a regular basis.

  • http://www.theminorityreportblog.com/blog/loren_heal Socrates

    What is meant by “waste”? A quick web search reveals several definitions. The best thing about these searches is that they delineate the connotations of a word, not that they provide authority for a meaning.

    • Spend thoughtlessly; throw away; “He wasted his inheritance on his insincere friends”; “You squandered the opportunity to get and advanced degree”
    • Use inefficiently or inappropriately; “waste heat”; “waste a joke on an unappreciative audience”

    There are other meanings, such as “to waste away from disuse” or “a waste product”. I think we can focus on the two meanings above.

    The meaning that Barack Obama wants us to infer he intends is found in (2). We are to believe that the government will now zero in like a laser on the inefficient administration of the programs in question. But what he really means is (1), that there benefits provided that should not be provided. And that’s what will be cut, is care for old people in favor of more efficient use of resources, caring for the young and able.

    Who is committing fraud? Doctors and hospitals … or patients? Insurance companies? How can that fraud be uncovered? Only through the application of increased bureaucracy, which is waste of its own.

    Abuse? Like waste, abuse is in the eye of the beholder. Is it abuse to go to the emergency room for a cold? I could go on, but the point is clear. The more they try to cut out abuse, the more expensive, and less useful, they will make the system.

  • izoneguy

    Plumber with shattered arm left horrifically bent out of shape has operation ‘cancelled four times’

    Read more: http://www.dailymail.co.uk/news/article-1218927/Plumber-shattered-arm-left-horrifically-bent-shape-operation-cancelled-times.html#ixzz0TMUabLTp

  • Aaron Gardner

    They don’t car which route you take, they only care that your money be taken away from you and given to someone else. That is the overall point of socialism communism social justice.

  • http://www.letfreedomringblog.com ggross56

    I wrote here that the Devil is in the details:

    http://www.letfreedomringblog.com/?p=5844

  • Richard Mullins
  • ellisclarke

    How anyone can come up with projected figures for a health care bill, that has not even been completed is beyond genius. Further over the past 20 years the CBO estimates on all bills has been way off and cost taxpayers far beyond what they projected the costs to be. Lets all get real and what for a final bill that can be analysed and budgeted for on a yearly basis and not based on fuzzy math with medical fee reductions of 25% for the year 2011.

  • mikek369

    Watch my facebook page the next couple weeks for protests coming to a town near you. As we speak, we are lining up medical device manufacturing ceos to explain the devastation the health care bill will have on their industry as well as on the workers in Kociusko County, Indiana.

    Protests also planned at the courthouse in Fort Wayne on October 24th. America, we must stand up and be counted….Hey fringe media…Can You Hear Us Now?

    www.fortwaynevoiceoftruth.blogspot.com

  • dclamage

    If Democrats know how to eliminate waste and fraud in Medicare/Medicaid, why aren’t we doing those things now? Do we really need new legislation just to achieve that?

    I know how to trim hundreds of billions of dollars from Medicare/Medicaid: phase the programs out entirely, over the next 20 years. They’ve been proven to be miserable, unmitigated disasters.

    We already have a “public option”, and they’ve failed to achieve the lofty goals they were intended to achieve. So let’s cut our losses and kill the programs.

  • gemimail

    The CPAP machine you need to handle sleep apnea, a fairly common malady, costs well over $1,000. Medicare does cover this machine and supplies for it if you are on it. What about motorized wheelchairs that can easily run north of $5,000 which Medicare covers? Does this mean that Medicare and Medicare supplement insurance will have to pay this tax? Of course if you are not old enough to be on Medicare, you are really up the proverbial polluted estuary without any visible means of locomotion.