Tag Archives: Obamacare

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Does the CBO think that repealing Obamacare will help or hurt the deficit?

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Gateway Pundit reports that the Democrats have been telling everyone that repealing Obamacare will make the budget deficit worse.

The left-wing Washington Post says:

Rescinding the federal law to overhaul the health-care system, the first objective of House Republicans who ascended to power this week, would ratchet up the federal deficit by about $230 billion over the next decade and leave 32 million more Americans uninsured, according to congressional budget analysts.

The rough estimate by the Congressional Budget Office also predicts that most Americans would pay more for private health insurance if the law were repealed.

The headline of this left-wing Washington Post news article is “CBO says health care repeal would deepen deficit”.

The left-wing New York Times says:

The nonpartisan budget scorekeepers in Congress said on Thursday that the Republican plan to repeal President Obama’s health care law would add $230 billion to federal budget deficits over the next decade, intensifying the first legislative fight of the new session and highlighting the challenge Republicans face in pursuing their agenda.

The budget office estimated that the health care law, including education provisions, would reduce deficits over 10 years by $143 billion. Tax increases and cuts in projected Medicare spending would more than offset the cost of extending health insurance to millions of Americans. The budget office projected that the law would result in even bigger savings beyond 2019.

The headlines of this left-wing New York Times news article is “Republicans Are Given a Price Tag for Health Law Repeal, but Reject It”.

Wow, that sounds bad.

But is it true? Is it possible that the government can cover MILLIONS OF PEOPLE and have health care costs GO DOWN?

Well, look at the latest CBO numbers, straight from the CBO mailing list.

Excerpt:

CBO and the staff of the Joint Committee on Taxation (JCT) have not yet developed a detailed estimate of the budgetary impact of H.R. 2, the Repealing the Job-Killing Health Care Law Act, which would repeal the major health care legislation enacted in March 2010. Yesterday, we released a preliminary analysis of that legislation indicating that, over the 2012-2021 period, the effect of enacting H.R. 2 on the federal budget as a result of changes in direct spending and revenues is likely to be an increase in deficits in the vicinity of $230 billion, plus or minus the effects of forthcoming technical and economic changes to CBO’s and JCT’s projections for that period.

We have been asked to provide the revenue and direct spending components of that total.  Extrapolating the estimated budgetary effects of the original health care legislation and accounting for the effects of subsequent legislation, CBO anticipates that enacting H.R. 2 would probably yield, for the 2012-2021 period, a reduction in revenues in the neighborhood of $770 billion and a reduction in outlays in the vicinity of $540 billion, plus or minus the effects of forthcoming technical and economic changes to CBO’s and JCT’s projections.

Ah. So repealing Obama care would CUT SPENDING by 540 BILLION DOLLARS. And the only way to say that Obamacare can produce a surplus is by RAISING TAXES BY 770 BILLION DOLLARS.

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When you let Democrats control health care, they close hospitals

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From the Weekly Standard. (H/T ECM)

Excerpt:

Under the headline, “Construction Stops at Physician Hospitals,” Politico reports today that “Physician Hospitals of America says that construction had to stop at 45 hospitals nationwide or they would not be able to bill Medicare for treatments.” Stopping construction at doctor-owned hospitals might not seem like the best way to boost the economy or to promote greater access and choice in health care, but that exactly what Obamacare is doing.

Kenneth Artz of the Heartland Institute explains, “Section 6001 of the health care law effectively bans new physician-owned hospitals (POHs) from starting up, and it keeps existing ones from expanding.” Politico adds, “Friday [New Year’s Eve] marked the last day physician-owned hospitals could get Medicare certification covering their new or expanded hospitals, one of the latest provisions of the reform law to go into effect.”

This little-noticed but particularly egregious aspect of Obamacare is, by all accounts, a concession to the powerful American Hospital Association (AHA), a supporter of Obamacare, which prefers to have its member hospitals operate without competition from hospitals owned by doctors.  Dr. Michael Russell, president of Physician Hospitals of America, which has filed suit to try to stop this selective building-ban from going into effect, says, “There are so many regulations [in Obamacare] and they are so onerous and intrusive that we believe that the section [Section 6001] was deliberately designed so no physician owned hospital could successfully comply.”

Artz writes, “According to Russell, the AHA, along with Sen. [Max] Baucus (D-MT) and Congressman Pete Stark (D-CA), are responsible for the language in Section 6001.”  But the responsibility for all aspects of the overhaul primarily lies with outgoing-House speaker Nancy Pelosi, Senate majority leader Harry Reid, and, particularly, Obamacare’s principal champion, President Barack Obama.

This is just like letting the Democrats control energy policy. They block coal production, oil drilling, oil refining and construction of nuclear power plants. What happens where there is less power being produced and demand is increasing because of India and China? Well, supply decreasing, and demand increasing = SHORTAGE = HIGHER ENERGY PRICES. And that’s exactly what they’ve done with health care.

Meanwhile, new conservative House majority leader John Boehner has introduced a bill to REPEAL OBAMACARE. (H/T ECM)

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UK patients denied treatment as “public option” system makes cutbacks

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From the UK Telegraph. (H/T ECM)

Excerpt:

Hundreds of thousands of NHS patients are being denied routine procedures as dozens of trusts cut back on surgery, scans and other treatments in order to save money, a Daily Telegraph investigation has found.

Trusts around the country are refusing to pay for operations ranging from hip replacements, to cataract removal and wisdom tooth extraction.

The health service is also tightening restrictions that prevent patients undergoing procedures for lifestyle reasons.

Smokers and obese patients are being denied operations until they change their habits and trusts are delaying surgery and non-emergency treatments, the Telegraph has found in the most comprehensive snapshot of NHS cuts yet.

The cuts – which include the cancelling of MRI scans and x-rays – are taking place in defiance of the Coalition.

Ministers are determined that front line services should be protected and the savings needed can be found from management costs and efficiencies.

But there is growing evidence that NHS managers are sacrificing patient care instead.

Doctors and nurses said the ‘grim’ results undermine the ‘myth’ that front line services are being protected and warned they were just the ‘tip of the iceberg’.

The situation is predicted to get worse as the NHS struggles to save £20bn over the next four years.

Although ministers have pledged to protect the health service budget and provide a real terms increase, it will not be sufficient to keep pace with growing demand and increasing costs.

In addition from April next year the amount of money hospitals receive for each type of treatment will be cut by 1.5 per cent raising fears that managers will refuse to provide treatments that they make a loss on.

As part of the investigation, The Telegraph had responses from almost one in three primary care trusts.

Cuts were uncovered in 20 out of the 145 primary care trusts in England. Fifteen PCTs have said they are not cutting services and 11 were still undecided.

[…]Dr Mark Porter, Chairman of the British Medical Association’s Consultants Committee, said: “Each of these examples undermines the myth that the NHS has been protected from the financial crisis. These are all services that patients value.

“They are by and large not being axed for clinical reasons, but as an inevitable consequence of the massive cost savings that have been imposed on the NHS.

“Despite the continuing claims of real terms increases for the NHS, the reality on the ground is very different. The scale of the financial challenge facing the service is such that this is likely to be the tip of the iceberg.

Making health care “free” for patients and preventing people and businesses from making a profit on providing health care leads to higher demand and lower supply. The net result is a shortage. It’s the law of economics.