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Ooops! Cost of Obamacare just doubled. CBO: Health reform could cause people to lose workplace coverage what happened to 900billion over 7yrs huh

Herb 2012/03/16 07:40:29

http://www.politico.com/news/stories/0312/74061.html

By J. LESTER FEDER | 3/15/12 11:54 AM EDT

A new report from the Congressional Budget Office hands critics of the health reform law a great new talking point: Under a worst-case scenario, the law could lead to 20 million people losing their employer-sponsored insurance in 2019.

The agency doesn’t think that’s likely, however. The new report, released Thursday, said the agency expects 3 million to 5 million fewer people to have employer coverage each year because of the health reform law. That’s close to the agency’s original estimate, which predicted 3 million people could lose their workplace coverage.

But the new report also lays out the worst-case scenarios and the best-case scenarios, which led to the 20 million estimate. In the best-case scenario, CBO says an increase of 3 million workers with employer insurance is possible.

Even the worst-case scenario wouldn’t be a fiscal calamity for the federal government, which would have to subsidize coverage for many of these workers through the new health insurance exchanges or cover them through Medicaid. In fact, CBO said it could actually reduce the cost of the health reform law because their coverage would be more than offset by employer penalties and increased tax revenue.

But any loss of employer-sponsored coverage could be disruptive to the people who lose their insurance, even if they’re able to replace it through another source, like the health insurance exchanges that will be created under the law. And Republicans and other critics of the law are sure to highlight the new estimates as proof that health reform will force people out of health plans they like.

House Budget Committee Chairman Paul Ryan said the report proves President Barack Obama has already broken his promise that health reform wouldn’t endanger the coverage people already have. “As nonpartisan analysts made clear today, millions of Americans will soon learn the hard way that Washington’s overreach into their health care decisions will result in sharp disruptions to their coverage and their care,” Ryan said in a statement. “The president’s disastrous health care law continues to unravel.”

And Sen. Orrin Hatch (R-Utah), the ranking Republican on the Senate Finance Committee, said the 20 million estimate “exposes more of the real costs of the president’s unconstitutional, deeply flawed health spending law. … This law keeps getting worse and worse; it needs to be repealed.”

Those changes would come on top of the losses in coverage that have already happened because of the recession. Another report also released Thursday, by the Center for Studying Health System Change, said the high unemployment rate during the recession reduced the share of people with workplace health insurance by 10 percent — and that employers probably won’t return to their previous levels of coverage even after the economy recovers.

According to the CBO report, a large decline in employer insurance would, paradoxically, actually reduce the law’s price tag by about $13 billion — because the cost of covering these workers under Medicaid and through the exchanges would be partly offset by the penalties employers will pay for not providing coverage. And the rest of the added costs would be more than made up from another source: higher income taxes.

CBO assumes that if employers stop paying health insurance premiums — which economists believe have been depressing wages for years — employees will start getting larger paychecks and sending more to the IRS.

But CBO says it continues to believe that "most employers will continue to have an economic incentive to offer health insurance to their employees," so it does not expect a dramatic change in employer coverage.

This article first appeared on POLITICO Pro at 11:50 a.m. on March 15, 2012.



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  • Andrew 2012/03/16 07:47:40
    Andrew
    +4
    Any time the CBO makes an estimate, just add a few zeros and you'll come closer to the truth!

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  • Aqua Surf BTO-t-BCRA-F 2012/03/18 22:17:25
    Aqua Surf BTO-t-BCRA-F
    Done on purpose so as to make us all dependent on the nanny state. We're headed for old Soviet Union living.
  • WhereIsAmerica? ~PWCM~JLA 2012/03/16 15:54:57
    WhereIsAmerica? ~PWCM~JLA
    Yep, it is a nightmare, but by the time many people realize that, it may be too late.
  • Louisa - Enemy of the State 2012/03/16 14:13:43
    Louisa - Enemy of the State
    +1
    OMG! This is only the beginning!! Since when has the government ever OVERESTIMATED any project they are pushing on us.

    I also think they are not taking into consideration that 'new' and very expensive technology should be coming on the market. Oh........that technology won't be available to the common folk? Only government officials? Now I get it.
  • Torchmanner ~PWCM~JLA 2012/03/16 12:28:49
    Torchmanner ~PWCM~JLA
    +2
    We knew that when the organization chart came out. You can't create a huge conglomerate of an administration without having huge overhead costs. Where is the looney OWS bunch at on this?
  • WannaBeRSC the Contrarian SOB 2012/03/16 08:32:21
    WannaBeRSC the Contrarian SOB
    +3
    My personal favorite is the up front payments towards abortion. From the Liberty Council;
    Mathew Staver, Founder and Chairman
    Liberty Counsel

    3/14/2012
    The news about ObamaCare in the past 24 hours is truly shocking! My profound resolve to make sure the immoral and impractical ObamaCare healthcare “reform” law is struck down has grown with each new revelation!

    Thousands of participants in Liberty Counsel’s focused prayer campaign are already fervently calling upon the Lord to deliver us from ObamaCare! After you read about today’s “announcements,” I feel certain you will want to lend YOUR voice to that prayer. Please read my important message on ObamaCare and its latest dictatorial “mandate” – Mat.


    It’s now official. Contained in just-released Health and Human Services guidelines is yet another mandate that requires an “abortion premium” for the establishment of state health care exchanges.

    According to our friends at LifeNews…

    “To comply with the accounting requirement, plans will collect a $1 abortion surcharge from each premium payer… The enrollee will make two payments, $1 per month for abortion and another payment for the rest of the services covered.

    As described in the rule, the surcharge can only be disclosed to the enrollee at the time of enrollm...
























    My personal favorite is the up front payments towards abortion. From the Liberty Council;
    Mathew Staver, Founder and Chairman
    Liberty Counsel

    3/14/2012
    The news about ObamaCare in the past 24 hours is truly shocking! My profound resolve to make sure the immoral and impractical ObamaCare healthcare “reform” law is struck down has grown with each new revelation!

    Thousands of participants in Liberty Counsel’s focused prayer campaign are already fervently calling upon the Lord to deliver us from ObamaCare! After you read about today’s “announcements,” I feel certain you will want to lend YOUR voice to that prayer. Please read my important message on ObamaCare and its latest dictatorial “mandate” – Mat.


    It’s now official. Contained in just-released Health and Human Services guidelines is yet another mandate that requires an “abortion premium” for the establishment of state health care exchanges.

    According to our friends at LifeNews…

    “To comply with the accounting requirement, plans will collect a $1 abortion surcharge from each premium payer… The enrollee will make two payments, $1 per month for abortion and another payment for the rest of the services covered.

    As described in the rule, the surcharge can only be disclosed to the enrollee at the time of enrollment. Furthermore, insurance plans may only advertise the total cost of the premiums without disclosing that enrollees will be charged a $1 per month fee to directly subsidize abortions.”

    Here’s the bottom line: All Americans were lied to by our President, who promised that ObamaCare would not enhance abortion services, nor would taxpayer money be used to fund these murderous procedures!

    And you will certainly remember the President’s oh-so-sincere promise that “If you like your healthcare plan, you can keep it.”
    It turns out that, too, was a convenient “misrepresentation.”

    ++CBO Report: ObamaCare cost estimates have doubled!

    Yesterday the Congressional Budget Office (CBO) released its most recent projections revealing that ObamaCare’s costs will be more than double what the President promised and Congress approved – from $900 Billion to $1.76 Trillion. Analysts say the true cost will, in all likelihood, far exceed $2 Trillion over that ten-year span.

    We have been saying all along that the Obama administration used accounting trickery to insure that his healthcare package came in under $1 Trillion. Now that, too, has been CONFIRMED.

    ++Far fewer people will be able to obtain employer plans – or keep their existing plans – than was falsely promised.

    Further, the CBO report disclosed the likelihood that four million people – more than four times the original estimate – will be unable to have access to healthcare services through their employers.

    ++We must fervently pray to be delivered from the murderous, unaffordable, deceitful snares of ObamaCare!

    I was taken aback yesterday when President Barak Obama, the leader who habitually shuns National Day of Prayer observances, called for a “prayer vigil” to rally public support for his cornerstone legislation.

    As I said yesterday, I applaud the President’s desire to submit ObamaCare to the Lord, but I think he may be very surprised at His response!

    I am requesting that ALL friends of Liberty Counsel rise up in an unprecedented wave of unity – and PRAY – not to sway public opinion – but, as Joel 1:14 declares, to “Summon the elders and all who live in the land to the house of the LORD your God, and cry out to the LORD.”

    http://www.libertyaction.org/...
    (more)
  • Andrew 2012/03/16 07:47:40
    Andrew
    +4
    Any time the CBO makes an estimate, just add a few zeros and you'll come closer to the truth!
  • Judy224 2012/03/16 07:45:03
    Judy224
    +2
    I guess we all have to die by 2019 then. Make sure you use up all of your vacation and sick time by then.
  • WhereIs... Judy224 2012/03/16 15:57:03
    WhereIsAmerica? ~PWCM~JLA
    +1
    The painful changes will go on for the entire 7 years.

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