CBO confirms: ObamaCare with “doctor fix” will actually add billions to the deficit

posted at 6:07 pm on March 19, 2010 by Allahpundit

The exciting conclusion to yesterday’s post about what a shameless fraud the CBO numbers are. How do you slap a $940 billion pricetag on what’s actually a multitrillion-dollar bill? Well, as we’ve seen, the first thing you do is make sure not to start the program until almost halfway through CBO’s window of time for measuring how much it’ll cost. That cuts a trillion or two right off the top. But what if that still leaves you with budget deficits, thus crippling your sub-moronic talking point about how this massive new federal entitlement will save money over time?

Simple. You break the bill up and pass one of the expensive parts separately later. Here’s how a supposed $118 billion reduction in the deficit becomes another case of Obama bloat:

You asked about the total budgetary impact of enacting the reconciliation proposal (the amendment to H.R. 4872), the Senate-passed health bill (H.R. 3590), and the Medicare Physicians Payment Reform Act of 2009 (H.R. 3961). CBO estimates that enacting all three pieces of legislation would add $59 billion to budget deficits over the 2010–2019 period.

Under current law, Medicare’s payment rates for physicians’ services will be reduced by about 21 percent in April 2010 and by an average of about 2 percent per year for the rest of the decade. H.R. 3961 would increase those payment rates by 1.2 percent in 2010 and would restructure the sustainable growth rate mechanism beginning in 2011. Those changes would result in significantly higher payment rates for physicians than those that would result under current law. CBO estimates that enacting H.R. 3961, by itself, would cost about $208 billion over the 2010–2019 period. (That estimate reflects the enactment of two short-term extension acts, which lowered the cost in 2010 by about $2 billion compared with CBO’s estimate of November 4, 2009.)…

CBO estimates that enacting H.R. 3961 together with those two bills would add $59 billion to budget deficits over the 2010–2019 period. That amount is about $10 billion less than the figure that would result from summing the effects of enacting the bills separately. The $10 billion difference occurs primarily because H.R. 3590 and the reconciliation proposal would modify how the government’s payments to Medicare Advantage plans are set.

Still waiting to find out that if that memo urging Democrats not to talk about “doc fix” is real or not, but you can see why it’s good advice either way. Not only are they hiding another $208 billion in costs, but their dishonesty in passing doc fix separately will cost another $10 bil that could be avoided by passing everything together. Except, of course, that trying to pass everything together would send “fiscally conservative” Democrats fleeing for the hills — not because they care about a trillion-plus pricetag, but because they care that you might care. Or maybe they don’t even care about that, given the way the votes are falling today. Add Suzanne Kosmas to the roll of the shame.

More to come tonight, no doubt, in a very special edition of the Friday evening news dump.

Update: Oh look, some more hidden costs discovered by CBO. Who’s up for another $50 billion on the hook just to administer this thing?

In its March 11, 2010, cost estimate for H.R. 3590, the Patient Protection and Affordable Care Act (PPACA), as passed by the Senate, CBO indicated that it has identified at least $50 billion in specified and estimated authorizations of discretionary spending that might be involved in implementing that legislation. The authority to undertake such spending is not provided in H.R. 3590; it would require future action in appropriation bills. The attached table provides additional information about those authorizations.

Discretionary costs under PPACA would arise from the effects of the legislation on several federal agencies and on a number of new and existing programs subject to future appropriation. Those discretionary costs fall into three general categories…

Update: This is all contingent, of course, upon the Democrats actually passing doctor fix later. Oh, hey look — the AMA, which supports doc fix, just endorsed ObamaCare! Coincidencemania!


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

It’s the Choctaw in me.

thomasaur on March 19, 2010 at 6:41 PM

Choctaw huh? I got a little Cherokee in me…

FontanaConservative on March 19, 2010 at 6:48 PM

Dang my comment had to appear first on page 2 :(

Don’t worry guy’s this thread is not about indians

FontanaConservative on March 19, 2010 at 6:49 PM

not covered by ObamaCare

urbancenturion on March 19, 2010 at 6:46 PM
+1
:)

cmsinaz on March 19, 2010 at 6:46 PM

+2!

Archimedes on March 19, 2010 at 6:49 PM

And now the news…

In a party line vote, Democrats pass ObamaCare; women and minorities hardest hit…

urbancenturion on March 19, 2010 at 6:50 PM

Well, I guess the “Declaration of Independence” will have to be we-written to be the “Declaration of Dependence” where all other men are created equal.
Spread the equality!

Electrongod on March 19, 2010 at 6:51 PM

? for any attorney out there…

When my husband’s company chooses to drop insurance for employees because the fine is cheaper (actually stated in the CBO report this will happen) can I sue Obama personally for lying to the American people and members of Congress with his statement “If you like your plan, you keep your plan.”? It will definitely affect us financially as well.

truetexan on March 19, 2010 at 6:52 PM

It appears as though I may have to return to my life of crime. – thomasaur on March 19, 2010 at 6:34 PM

There are going to a lot of people who are going to be felons, if this law passes. Perhaps they should start building the prisons.

SC.Charlie on March 19, 2010 at 6:52 PM

If you think the CBO “adjustments” are coming in slow now, just wait till they pass this treasonous take-over.

Rovin on March 19, 2010 at 6:53 PM

P.S. How do you look in the mirror Elmendorf, knowing full well you’ve lied to this nation.

Rovin on March 19, 2010 at 6:55 PM

There are going to a lot of people who are going to be felons, if this law passes. Perhaps they should start building the prisons.

SC.Charlie on March 19, 2010 at 6:52 PM

I don’t intend on going to jail.

thomasaur on March 19, 2010 at 6:55 PM

Choctaw huh? I got a little Cherokee in me…

FontanaConservative on March 19, 2010 at 6:48 PM

No you’re Amish. We’re all Amish – H/A is an Amish community.

batterup on March 19, 2010 at 6:57 PM

thomasaur on March 19, 2010 at 6:34 PM

For me, I’ll park for 20 minutes in a 10 minute parking only curb. That’ll show em’

FontanaConservative on March 19, 2010 at 6:57 PM

truetexan on March 19, 2010 at 6:52 PM

I’m no attorney, but I’d bet “No.” My question to attorneys…these back room deals, denials, underhanded stuff…Whaddabout ‘Statute of Frauds?’ Meaning if it could be proven that they are lieing about the deals, isn’t that fraud being perpetrated on the American peeps?

Chewy the Lab on March 19, 2010 at 6:59 PM

batterup on March 19, 2010 at 6:57 PM

“Nothing is better for thee…or me.”

Chewy the Lab on March 19, 2010 at 7:00 PM

thus crippling your sub-moronic talking point about how this massive new federal entitlement will save money over time?

Don’t we call that a “sub-crr6 talking point” here at HA?

WashJeff on March 19, 2010 at 7:03 PM

Oh, hey look — the AMA, which supports doc fix, just endorsed ObamaCare! Coincidencemania!

Snarkalicious!

WashJeff on March 19, 2010 at 7:06 PM

Don’t worry guy’s this thread is not about indians

Mighty non-PC, don’t you think? Shouldn’t you use “injun” or “redskin”- err, I mean native American?

lionheart on March 19, 2010 at 7:07 PM

I guess the fabulous 53% are going to get what they voted for.

BuckeyeSam on March 19, 2010 at 7:08 PM

FOR SALE: PITCH FORK SHARPENER—BARELY–SELDOM–WELL USED—WORN OUT—NEEDS PARTS–$50–$400–$4000.00—NOT FOR SALE!

Rovin on March 19, 2010 at 7:08 PM

batterup on March 19, 2010 at 6:57 PM

but I don’t wanna be an Amish :(

FontanaConservative on March 19, 2010 at 7:09 PM

The numbers were screwed before the ‘doctor fix’. In the first ten years of this plan, revenue is collected for ten years and benefits are paid out for six years. The difference between the two shows a surplus. That right there is fraudulant. If all of us could deposit ten months worth of paychecks and only pay for six months of expenses, our bottom line might look sweet for a while, too. But, that’s not how life works. The right way to score this is to bang ten years of revenue against ten years of expenses. And when that happens, this isn’t a $940 billion bill anymore.

joejm65 on March 19, 2010 at 7:12 PM

Perhaps they should start building the prisons.

SC.Charlie on March 19, 2010 at 6:52 PM

It’ll be funded under a jobs bill.

They will create jobs by declaring a group of people to be criminals.

What has this country come to when the above is a real possibility…

Holger on March 19, 2010 at 7:13 PM

but I don’t wanna be an Amish :(

FontanaConservative on March 19, 2010 at 7:09 PM

Don’t worry … the democrats will figure out a way to get the Amish under their thumb.

darwin on March 19, 2010 at 7:13 PM

I wonder what would happen if the GOP fought the “doctor fix?”

katiejane on March 19, 2010 at 7:15 PM

Hmmmmmmmm … I sure would like the military to pull some Honduran magic right about now.

I know, I know … I can dream can’t I?

darwin on March 19, 2010 at 7:15 PM

joejm65 on March 19, 2010 at 7:12 PM

So where does the money to pay for this come from after that, if not from higher taxes? How is it paid for after year 10?

truetexan on March 19, 2010 at 7:16 PM

I wonder what would happen if the GOP fought the “doctor fix?”

katiejane on March 19, 2010 at 7:15 PM

The democrats would say they’re trying to kill old people.

darwin on March 19, 2010 at 7:16 PM

Chewy the Lab on March 19, 2010 at 6:59 PM

I just don’t see how this sham can’t somehow be taken to court. The evidence of the lies is astounding!

truetexan on March 19, 2010 at 7:17 PM

Whaddabout ‘Statute of Frauds?’ Meaning if it could be proven that they are lieing about the deals, isn’t that fraud being perpetrated on the American peeps?
Chewy the Lab on March 19, 2010 at 6:59 PM

Chewy, “Statute of Frauds” is a Common Law concept which deals in what types of contracts must be reduced to writing.

skatz51 on March 19, 2010 at 7:18 PM

I wonder what else they are going to try and ram through now, doctor’s fix, higher taxes, and who knows what else they’ll do it the demon and reconciliation method if they can get away with it.

Brat4life on March 19, 2010 at 6:12 PM

Next up: Immigration “reform.” BTW, the HC bill makes “aliens lawfully present in the U.S.” eligible for taxpayer subsidies for the HC insurance. Under the Graham/Schumer immigration “reform” bill that Obama just endorsed (and will try to push through by whatever means necessary), all the illegal aliens currently residing in the U.S. (12-40 million, depending on whose estimates you believe) will become “aliens lawfully present in the U.S.” as soon as the bill passes. They will then be entitled to taxpayer subsidies to purchase HC insurance, and the additional billions of dollars that that will cost are not factored in in any way in the CBO’s cost “estimates” for the price of the HC bill.

AZCoyote on March 19, 2010 at 7:26 PM

skatz51 on March 19, 2010 at 7:18 PM

I’m well aware of that..hence: “backroom deals.” This is wink, wink, nod, nod schtuff. If that ain’t fraud, I don’t know what is. Now…the big thing is who is a party to this contract??? That may be the rub. Again, I’m not a lawyer. But my understanding is that AGREEMENTS (read CONTRACTS) must be in writing to be ENFORCEABLE). Verbal contracts are perfectly legal (if not enforceable). The problem comes in if one party says, “that’s not what I agreed to.” Other party has no proof (cuz’ not in writing) that that was the agreement, hence, not enforceable.

House members are ASKING for a written agreement from the senate (DUMBAZZ house members aren’t signing it…unilateral vs. bilateral contract….idiots! Nothing binding on the senate to abide by that agreement).

It’s a “whim and a prayer.” There’s also a huge “Quid pro quo” element…but snake oil by any other name…

Chewy the Lab on March 19, 2010 at 8:07 PM

My Doctor said he dropped his AMA membership this summer over this nonsense. Lie, Dam Lies, Demonpass Lies!

MidWestFarmer on March 19, 2010 at 8:18 PM

Hmmmmmmmm … I sure would like the military to pull some Honduran magic right about now.

I know, I know … I can dream can’t I?

darwin on March 19, 2010 at 7:15 PM

no, ObamaCare doesn’t cover that either…

urbancenturion on March 19, 2010 at 8:32 PM

So where does the money to pay for this come from after that, if not from higher taxes? How is it paid for after year 10?

truetexan on March 19, 2010 at 7:16 PM

after year ten, so many people have died from the atrocious state of heath care in the US, that there are less benefits to cover…

see there is a solution–a Slaughter solution

urbancenturion on March 19, 2010 at 8:35 PM

OT/Heh….I’m ordering this bumper sticker:

If pro is opposite of con, then what is the opposite of progress?

Congress!
Men’s restroom House of Representatives,
Washington , DC

sicoit on March 19, 2010 at 8:50 PM

Wait? Democrats lie and spend more money than the government brings in? What is this? 1901?

daesleeper on March 19, 2010 at 9:26 PM

Chewy, The quid pro quo is what is the illegal, fraudulent thing that is going on. Anyway the so-called secret agreements are not enforceable even if written if they for something illegal.

skatz51 on March 19, 2010 at 9:27 PM

I talked to my uber lib teacher friend tonight. I made 5 disparaging remarks about unions and democrats in 2 minutes and he kept quiet for the first time in 15 years.

It’s entertaining to watch stupid people learn something no matter how long it takes.

daesleeper on March 19, 2010 at 9:27 PM

Would you like a little American in you ?

borntoraisehogs on March 19, 2010 at 10:13 PM

Finally it hits me! That pic of Obama looks just like an old one of Stevie Wonder!
And both of them blind to boot!

Army Brat on March 20, 2010 at 1:57 AM

Another indication that Demoncrates will stoop to any means to get their way.

They cannot accept the truth and will lie all day long or avoid facing it in the hopes that it will go away. Sorry, no way will the truth go away – it demands an honest response.

MSGTAS on March 20, 2010 at 10:47 AM

Comment pages: 1 2