Posts Tagged ‘federal deficit’

May 15, 2012

Health Care News

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New Study Shows Obamacare’s Huge Additions to Federal Deficit

 A study released today by Charles Blahous, one of two public trustees of Medicare and Social Security, once again shows that Obamacare increases federal deficits and significantly worsens the nation’s fiscal outlook. According to the study’s most optimistic scenario, the health law will increase federal spending by $1.16 trillion and increase the deficit by $346 billion between 2012 and 2021. The worst case—and most realistic—scenario: an increase in spending of $1.24 trillion and $527 billion in new deficits.

Obamacare’s failure to reverse the federal government’s abysmal financial situation is not to be taken lightly. The legislation’s primary goal was to expand health coverage. However, Blahous points out that not only were the law’s fiscal benefits “consistently presented as a primary motivation for enacting legislation,” but it was also widely believed that health care reform was inextricably tied to reversing the fiscal outlook, since a significant portion of the nation’s long-term deficits are caused by federal spending on health care.

(Read the rest on The Foundry…)

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November 5, 2010

Heritage Research

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The Uncertainty of Health Care Projections

The Patient and Protection and Affordable Care Act (PPACA) is one of the largest and most controversial pieces of legislation ever enacted. Many economists and policy analysts have very different views on what effect PPACA will have on business, government finances, and the health care industry. During the debate, the Congressional Budget Office (CBO) had the daunting task of issuing the official estimate of the bill’s costs and savings. In announcing its findings, CBO director Douglas Elmendorf emphasized the uncertainty of the estimates. This calculator allows users to examine various scenarios using estimates from opposite ends of the ideological spectrum.

To read more about the policies that will affect the true cost of the PPACA , click here.

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June 3, 2010

Heritage Research

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Obamacare: Impact on Future Generations

Proponents of the recently passed health care law argue that the legislation was needed to improve the nation’s health system for both today’s citizens as well as future generations.  But there are many reasons to be concerned that this new law will instead deliver both a lower quality health system and more costly and burdensome government for those paying taxes in future years.  To learn more, click here.

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March 31, 2010

Health Care News

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Obamacare Spells Disaster for Americans

Bad News

Now that Obamacare passed, the Left is calling it a truly historic achievement, chalking it up as a victory for health care reformers everywhere. With the enactment of the House-Senate reconciliation bill, the so-called “fix” to the Senate bill, House Speaker Nancy Pelosi (D-CA) remarked that the bill did “something very important for the American people, very significant to their daily lives.” Well, Congressional liberals are correct about one thing. It’s historic. It is an unprecedented takeover of Americans’ health care now equal to one-sixth of the entire US economy. It is historic for its partisan backroom deals and controversial parliamentary tactics. And it is historic for its apparent disregard for the strongly held opinion of the majority of the American people. But it will long be remembered for its catastrophic side effects- in record spending and its disruption- on the lives of millions of Americans.

Recent research by Heritage’s Kathryn Nix looks at some of the major consequences of Obamacare. The paper outlines the ten ways in which liberals’ health care agenda will be a disaster for Americans. They include: (more…)

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March 9, 2010

Health Care News

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The President’s Health Plan Won’t Cut the Budget Deficit

President Obama with Doctors

One of the central arguments President Barack Obama has made on behalf of the health care plan he wants Congress to approve in coming weeks is that it would begin to address the problem of rising costs and thus also begin to bring down future federal budget deficits.

But will it?

The president’s plan has not yet been assessed by the Congressional Budget Office. But CBO has provided a cost estimate for the Senate-passed bill, upon which the president’s proposal is built. That estimate shows the Senate bill would reduce the budget deficit by $132 billion through 2019. CBO also says that the Senate bill would likely reduce projected deficits even more during the second decade of implementation.

But, as Republican Rep. Paul Ryan of Wisconsin noted at last week’s Blair House meeting, there are a number of reasons to be skeptical about this claim.

For starters, the Senate bill omits the president’s proposal to permanently restore a 21 percent reduction in Medicare’s fees for physician services, now in effect as of March 1. The administration estimates that overriding this cut will cost $371 billion through 2020. (more…)

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January 19, 2010

Health Care News

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Cost of Health Care Bill Soars, Despite President’s Pledge

President Barack Obama

While House and Senate leaders negotiate over the final version of a health care bill, they seem to have forgotten one thing: many of them, including the President, pledged to deny support to any bill which would add to the federal deficit. Until now, budgetary gimmicks have hidden the true cost of the health care bills, but neither chamber of Congress has succeeded at creating a bill which is deficit neutral and falls under $900 billion—the limit set by President Obama himself . In a recent paper, Heritage expert James Capretta lays bare the truth about the cost of Democrats’ health care bills:

The “Doc Fix.” Every year, Congress must vote to postpone cuts to Medicare physicians’ fees. Suspending these cuts adds to the federal deficit. Both the House and Senate bills were scored by the Congressional Budget Office (CBO) as though these cuts to physicians’ fees will occur, which, on paper, makes the cost of reform cheaper by hundreds of billions of dollars. Acknowledging that these cuts will not take place reveal that both health care bills add about $80 billion to the deficit over ten years. (more…)

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