No CBO Savings on Health Care
By Jacob Feldman • Monday, July 27, 2009 12:15 pm
The Congressional Budget Office has delivered yet another blow to the Democrats’ universal health care plan. In a letter addressed to House Majority Leader Steny Hoyer, CBO Director Douglas Elmendorf wrote:
“The proposed legislation states that IMAC’s recommendations cannot generate increased Medicare expenditures, but it does not explicitly direct the council to reduce such expenditures nor does it establish any target for such reductions. … As proposed, the composition of the council could be weighted toward medical providers who might not be inclined to recommend cuts in payments to providers or significant changes to the delivery system. … In CBO’s judgment, the probability is high that no savings would be realized … CBO estimates that enacting the proposal, as drafted, would yield savings of $2 billion over the 2010–2019 period.”
$2 billion in savings leaves President Obama $237 billion short of his promise that health care reform would not add “even one dime to our deficit over the next decade.” Since health care reform won’t result in savings for Americans, what should be expected?
Wall Street Journal columnist John Fund reported that in addition to the young people and small businesses negatively affected by Obama’s health care reform, Health Saving Accounts (HSA) holders will take a heavy hit. John Fund writes:
“These policies will be severely limited. The Senate plan says a policy deemed ‘acceptable’ must have insurance (rather than the individual) pay out at least 76% of the benefits. The House plan is pegged at 70%. That’s not the way these plans are set up to work. Roy Ramthun, who implemented the HSA regulations at the Treasury Department in 2003, says the regulations are crippling. ‘Companies tell me they could be forced to take products off the market,’ he said in an interview.”
Regulating HSAs hurts Americans trying to save money for future medical expenses. Legislation should encourage HSAs in order to cultivate personal responsibility for health care expenditures, rather than relying on the government’s kindness.
Comments (9)
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>> cqgfahwcz November 18, 2011 10:00 am
I agree with some but not all of your proposals.Insurance ciaemnops do a very poor job of covering catastrophic risks, and a lot of what they do what to insure is routine stuff most people don't need insurance for. The government should concentrate on the problems of catastrophic risks and let those who want to buy private insurance for other things do so.Tax free savings accounts are an interesting idea, but whether they make economic sense depends on the details.I think we should endeavor to reduce medical mistakes and negligence, so that people do not suffer and die needlessly. There is too much of that, including neglect which results in infections caught in the hospital. Very few victims of that actually sue, because lawyers want clients who had a huge income, because that is how they get the big awards. "Tort reform" should focus on getting rid of the bad doctors so more people don't get maimed or die.I don't think the sale of insurance across state lines will make much of a difference.
>> Steven August 30, 2012 12:06 pm
1. people can't arfofd to pay through the asss so that private companies can continue to make $billions$ in profits by denying health care2. Who can arfofd to put money into any kind of savings account?3. Malpractice lawsuits are not the problem. People who are killed or harmed by incompetent doctors should have a recourse for justice. And tort reform DOES NOT reduce malpractice premiums. And WHY should the public subsidize insurance for doctors who make $millions$4. People get screwed by insurance companies now. They'll have no protection at all if the companies can cross state lines and muddy the waters even more.
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