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The Spectacle Blog
Liberals are touting a new report by the Congressional Budget Office estimating that repealing the national health care law would add $145 billion to the deficit from 2012 to 2019, and $230 billion through 2021. These estimates should come as no surprise, because, aside from a few technical changes and updates, they are based on CBO projections from when the health care care law passed last March. These projections reflected the Democrats’ use of a number of accounting gimmicks, without which, the CBO separately acknowledged the law would actually run up deficits. As Paul Ryan notes, the reality is that the national health care law is a “fiscal train wreck.” The CBO deficit reduction number does not factor in double counting of Medicare savings and other revenue sources, and it doesn’t include $115 billion in costs needed to implement the law. Also, even if you take the CBO numbers at face value, what it boils down to is that over the next several decades, the federal government is raising taxes and cutting Medicare to pay for trillions in new spending. Increasing federal obligations is not an effective tool for long-term fiscal health, because any savings (or revenues) claimed by the new law would no longer be available for shoring up entitlements.
And another point that will probably get less attention today — today’s CBO estimate also finds that repealing the law would lower premiums for those who would not qualify for government subsidies.
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More Blog Posts by Philip Klein
http://spectator.org/blog/2011/01/06/cbo-and-obamacare-repeal
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Have you considered| 1.6.11 @ 11:28AM
Correct me if I'm wrong, but the CBO was Instructed by Congress to use their Assumptions, which were not derived by independent accountants and/or actuaries. Under these rules, CBO simply becomes a mouthpiece.
For example, if I were instructed to prepare a cash flow using a 20 day A/R turn around (cash received within 20 days of invoicing) instead of my best knowledge of reality of 35 days, then a rosy picture would surly be the end product.
Additionally, the "doc fix" was not a component of the law, and was not included in the CBO scoring. Was that not just passed as a separate bill that totaled an estimated 253B over 10 years?
CBO has no credibility in this accountant's mind.
Eric Cartman| 1.6.11 @ 12:41PM
Exactly. And if you look at write-offs (bad debts) as part of Cost of Goods Sold, it will look even rosier. Sort of like Fannie and Freddie. And then maybe triple dip and add them to your Selling, General & Administrative Expense while removing them as a credit from A/R while keeping them on the Allowance for Doubtful Accounts. Of course this is EBITDA. Pretty soon there is no taxable income and it's all profit! Just like the Government! WEEEEEEEEEEEEEE!
Someone should break down the door of the CBO and tell them they've been on double secret probation since 2008.
solidground| 1.6.11 @ 11:56AM
I just watched a few minutes of the Boehner press conference. The leftie reporters in the audience tried to pound Boehner on the CBO report and I thought he did a pretty good job sticking it back to them with some of the same facts presented in the piece above.
Wayne | 1.6.11 @ 12:00PM
One of the things the Democrats have succeeded in doing is destroying the credibility of the CBO. I remember one liberal telling me it was the gold standard. Not any more. It is now just the spin standard.
George S| 1.6.11 @ 12:02PM
It would be instructive, in terms of hammering home a point, to go back to 1965 and look at the cost projections for Medicare and compare that to the actual history.
Rider| 1.6.11 @ 1:16PM
Why don't the Repubs just go back to the CBO and instruct them to rescore the health care bill with "honest accounting"? And do it in a timely manner so they have figures in hand for the repeal vote. They control the CBO now , correct? If the revised info is higher than advertised, perhaps they could go to the president and let him know that Reid and Pelosi lied to him when they instructed/scored it the first time. Once he has been enlightened, he would (should) be more willing to reconsider his bill given the cost. Why doesn't Issa investigate CBO fraudulent scoring/instruction and indict the guilty whoever they are? They (the Repubs) could then start the process of rebranding themselves as something other than the "stupid party".
Eric Cartman| 1.6.11 @ 1:28PM
Or, have Price, Waterhouse Coopers or KPMG do it.
Darla Dawald | 1.6.11 @ 1:39PM
The CBO score is only as good as the information they were given. They do not bring in other facets but simply base the score on the info presented to them. It really is a ridiculous system. Sure I can make it look like I can afford something I want to buy if I leave off all my utility costs per month in the equation but can I really afford it???
mike| 1.6.11 @ 3:11PM
THE CBO ALSO IS SCORING THE NEW TAXES ON PRESCRIPTION DRUGS AND ALL MEDICAL DEVICES. REVENUES LOST IF OBAMACARE IS REPEALLED!
Indiana Alex| 1.6.11 @ 4:21PM
I suppose they don't take into account that there will be fewer medical devices made or sold if Obamacare is not repealled.