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CBO Slams Dem Move to Lower Health Costs

Nonpartisan group says Medicare panel would save little cash

By Wesley Oliver,  Newser Staff

Posted Jul 25, 2009 6:14 PM CDT

(Newser) – A White House proposal to give an independent panel the power to rein in Medicare spending would save the country almost no money over 10 years, the Congressional Budget Office declared today. The nonpartisan group’s findings—that savings would total only $2 billion from the $1 trillion program—dealt a second CBO blow this month to President Obama’s efforts to reform health, Politico reports.

Peter Orszag, Obama’s budget guru, downplayed the news, saying the panel's goal was to improve health care quality and reduce long-term costs, not generate savings. But Obama may need such an offset to attract fiscally conservative “Blue Dog” Democrats and deflect GOP attacks. "CBO has made clear once again that the Democrats' bills in Congress could just make the problem worse," said GOP Senate leader Mitch McConnell.

President Barack Obama pauses as he talks to the media in the briefing room of the White House in Washington, Friday, July 24, 2009.
President Barack Obama pauses as he talks to the media in the briefing room of the White House in Washington, Friday, July 24, 2009.   (AP Photo/Alex Brandon)
Budget Director Peter Orszag is downplaying the latest findings from the Congressional Budget Office on the Obama administration's health care reforms.
Budget Director Peter Orszag is downplaying the latest findings from the Congressional Budget Office on the Obama administration's health care reforms.   (AP Photo/Ron Edmonds)
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The probability is high that no savings would be realized, but there is also a chance that substantial savings might be realized.
- Douglas Elmendorf, CBO Director

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COMMENTS
Showing 3 of 15 comments
NotEvsie
Jul 28, 2009 7:38 AM CDT
It's both... no barriers for the insurance companies to screw people over for profit, pulling coverage, existing conditions etc etc - AND the ridiculous payments they are forced to pay out in the tort cases.
BackAgain
Jul 27, 2009 12:49 PM CDT
If the facts require a slamming then that is how it goes. Waaaa!
kokuaguy
Jul 27, 2009 3:33 AM CDT
The EMPLOYER already makes the decision, not the employee. So obviously you admit that the public option will be cheaper. Well, that's great for small business, right? The seniors I know are just fine with Medicare. My friend was just saying today how much better it is than her Kaiser plan mandated by her former employer.

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