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Health Care Reform Will Weaken Economy

The Washington Post is reporting that instead of saving the federal government from fiscal disaster the health care reform measures being drafted by the Democrats would weaken the economy by increasing the deficit and sinking the nation deeper into debt.

This is according to director of the non-partisan Congressional Budget Office,Douglas Elmendorf.


Under questioning by members of the Senate Budget Committee, CBO director Douglas Elmendorf said bills crafted by House leaders and the Senate health committee do not propose "the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a signficant amount."

"On the contrary," Elmendorf said, "the legislation significantly expands the federal responsibility for health care costs."

Though President Obama and Democratic leaders have said repeatedly that reining in the skyrocketing growth in spending on giovernment health programs such as Medicaid and Medicare is their top priority, the reform measures put forth so far would not fulfill their pledge to "bend the cost curve" downward, Elmendorf said. Instead, he said, "The curve is being raised."


The chairman of the Senate Budget Committee, Kent Conrad (D-N.D.), questioned Elemendorf about the health care reform measures being drafted:


"I'm going to really put you on the spot," Conrad told Elmendorf. "From what you have seen from the products of the committees that have reported, do you see a successful effort being mounted to bend the long-term cost curve?"

Elmendorf responded: "No, Mr. Chairman."
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Free Health Care Isn't Free

Recently the Congressional Budget Office reported that a government run health care system would cost at least a trillion dollars and cause the loss of Private coverage for about 23 million Americans.

Democrats counter that report by saying that the Congressional Budget Office's numbers do not reflect the savings the plan would create by "taxing" unhealthy foods like "sugar".

The plan which was authored by Senator Kennedy does not include the government run health insurance sought by Obama or the Democrats plan to extend Medicaid benefits to anyone making less than 150 percent of the federal poverty level. The Congressional Budget Office says that this would add significantly to the cost of the bill.


Enacting the Kennedy plan, nonetheless, "would result in a net increase in the federal budget deficits of about $1 trillion," says the CBO. "That estimate primarily reflects the subsidies that would be provided to purchase coverage through the new insurance exchanges, which would amount to nearly $1.3 trillion in that period."

The final figure comes in at $1.042 trillion due to revenue provided by increased taxes as people moved from employer-based, tax-free coverage to other forms of insurance, penalties for being uninsured, and reduced payments to physicians under Medicaid.

"Those costs would be partly offset by receipts or savings from three sources: increases in tax revenues stemming from the decline in employment-based coverage; payments of penalties by uninsured individuals; and reductions in outlays for Medicaid and CHIP."

The CBO also said that, if enacted, the bill would break a key promise made by Obama: that those with private health insurance would not be harmed.

"[T]he number of people who had coverage through an employer would decline by about 15 million (or roughly 10 percent), and coverage from other sources would fall by about 8 million," the report says.


On top of all this folks Representative Charles Rangel(D)(NY)Chairman of the Ways and Means Committee says that the Democrats plan will include $600 billion in tax increases and $400 billion in cuts to Medicare and Medicaid.

So 600 Billion in tax increases (coming from you of course), they want to Tax unhealthy foods and cut Medicaid and Medicare by 400 billion.

First, almost any food could be considered unhealthy, bacon,hot dogs,bologna,ham,potato chips, ring dings, etc., you get the idea, and by taxing "sugar" they are going to cause a rise in costs of not just sugar, but everything containing it (which is almost everything you eat. So your pocketbook will feel it there as well).

Cutting Medicaid and Medicare will reduce benefits to those who now rely on it.

There are an estimated 46 million without health care in the United States, the Democrats plan would extend coverage to 16 million Americans, still leaving 30 million uninsured.

Do you still think this is about getting health care coverage for every American and making it affordable ? Wake up people before it's too late !

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Talk Show America 7/15/2008

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Poll: Americans Support For More Drilling up, Climate Change Down, Obama Says Illegal Immigration Enforcement Equals Terror.
 
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