CBO director: Democratic health-care plan could worsen debt

This doesn’t sound good. If the national health care plan doesn’t hold down costs, then why propose it? Today’s Washington Post reports on what the Senate heard yesterday:

Under questioning by members of the Senate Budget Committee, Douglas Elmendorf, director of the nonpartisan Congressional Budget Office, said bills crafted by House leaders and the Senate health committee do not propose “the sort of fundamental changes” necessary to rein in the skyrocketing cost of government health programs, particularly Medicare. On the contrary, Elmendorf said, the measures would pile on an expensive new program to cover the uninsured.

Though President Obama and Democratic leaders have repeatedly pledged to alter the soaring trajectory -- or cost curve -- of federal health spending, the proposals so far would not meet that goal, Elmendorf said, noting, “The curve is being raised.” His remarks suggested that rather than averting a looming fiscal crisis, the measures could make the nation's bleak budget outlook even worse.

I suppose Elmendorf is one of the few people who have read the plan. Is there an economist in the house (or Senate)?

Frank Warner

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Update: On July 25, CBO again finds health care bill would cost $1 trillion over 10 years.

Comments

[David Holliday]

It's not about reality it's about ideology. Do you really think businesses and providers haven't been seeking ways to contain health care costs? I was a small business owner and I provided health care for my employees. Every year the cost increased 10-15%. This represented real cost that I had to account for in order to remain competitive. How business provides health care coverage to its employees and how industry provides coverage to business is replete with attempts to manage costs. Cost sharing, HMO's, PPO's, copayments, generics, preventative care, etc. are just some of the many things that have been put in place to manage costs. Yet the costs keep going up each year. This is because the choices are hard. Who are you going to tell they can't get a procedure they need or that their treatment has gone on too long and will be ended? When this type of thing happens now the press screams bloody murder about the wretched, capitalist pigs that have no heart and don't care for their people. Under Obama’s plan this sort of treatment will be nationalized.

What Obama's plan would do is take away the choices. Under the plan that just came out of committee it would be illegal to have private health care insurance. Obama’s plan would limit health care and literally make decisions based on "human math" on who should and shouldn't receive care. And it would include millions into the system who are currently uncovered by plans and make them the responsibility of the rest of us who already struggle to make ends meet. In other words, the plan would limit the care for all of us that are already paying for our health care so that they can offer care to people who can't or won't pay for their own coverage.

This is socialism at its finest. Socialism has failed everywhere it’s been tried. Now with virtually every previously socialist country moving to more capitalist systems the most successful, economically viable, capitalist country on earth is moving to Socialism.

This administration is the worst ever. It makes Carter look good.

[Neo]

One small point, the plan actually allows you to keep your existing Private health care insurance, but prohibits new policies.

Small consolation it you have to change.