[Guest post by DRJ]
The Washington Post reports the CBO has issued its report:
“An emerging compromise on health care between House and Senate Democrats would cost $940 billion over the next decade and expand insurance coverage to an additional 32 million Americans, congressional budget analysts said Thursday. Their preliminary report suggests the two-part legislation would bring the nation closer to universal health coverage than at any time in its history.
According to the nonpartisan Congressional Budget Office, the measure would make insurance available to an estimated 95 percent of non-elderly citizens by dramatically expanding Medicaid, the government health program for the poor, and offering tax credits to an estimated 24 million Americans who would otherwise find it difficult to afford coverage.”
Here’s how the CBO says the legislation will impact the budget:
“The cost of expanding coverage would exceed $200 billion a year by 2019, the CBO said. But new revenue in the package, combined with savings from program cuts, would outpace the cost of coverage, reducing the federal deficit by $138 billion over the next 10 years. The savings would continue to accumulate in the decade thereafter, the CBO said, eventually slicing around $1.2 trillion from the nation’s budget gap.”
The Washington Post has an interesting chart comparing the Senate Bill with the Reconciliation Bill. According to the link, the CBO projects there are currently 54 million non-elderly uninsured Americans, and there will be 23 million uninsured under the Senate Bill and 22 million uninsured under the Reconciliation Bill. (I assume the report of 32 million covered by ObamaCare includes elderly and non-elderly Americans. Are the 22-23 million uninsured America’s illegal immigrants? Hopefully so. If not, the promise that everyone will have health insurance under ObamaCare is under the bus.)
In addition, under the CBO projections, the government will spend $65B more under the Reconciliation Bill than the Senate Bill to cover an extra 1 million Americans, resulting in an additional $20B in savings. Thus, the government will be paying an extra $65B to cover just 1 million more people, yet will only save an extra $20B. This tells me the more these programs cost and the more people they cover, the less efficient they become … so if there are cost overruns (and there will be) costs should go up even more.
SHORTER VERSION: How did the Democrats do it? A 10 year plan with $17B in costs in the first 4 years and $923B in the last 6.