Oh What’s a Little Double-Counting Among Friends?

Obama and company have been touting for months that the healthcare plan would be deficit neutral at the very least and deficit reducing at the most and that they had the CBO to back that statement. Well, at one point the CBO did say that, but now the same office has come out and retracted the statement.

 Now the CBO has come out and said, yeah, they’ll be savings alright, but only enough to finance the Healthcare plan or make Medicare solvent, but not both. So it can’t strengthen Medicare and decrease the deficit at the same time. But if you listen to Obama you’d be thinking that  he could:

This bill with strengthen Medicare and extend the life of the program.   Because it’s paid for and gets rid of waste and inefficiency in our health care system this will be the largest deficit reduction plan in over a decade.  In fact, we just learned from the Congressional Budget Office that this bill will reduce our deficit by $132 billion over the first decade of the program, and more than one trillion dollars in the decade after that.

Even Harry Reid said on the Senate floor:

“And it protects America’s oldest citizens by strengthening Medicare and extending its life by nearly a decade….

“This bill also strengthens our future by cutting our towering national deficit by as much as $1.3 trillion dollars over the next 20 years – that’s trillion, with a ‘T.’  It cuts the deficit more sharply than anything Congress has done in a long time  DEMOCRATS

  But the reality is where the CBO has now declared that they were wrong in their initial assessment.

The key point is that the savings to the HI trust fund under the PPACA would be received by the government only once, so they cannot be set aside to pay for future Medicare spending and, at the same time, pay for current spending on other parts of the legislation or on other programs. Trust fund accounting shows the magnitude of the savings within the trust fund, and those savings indeed improve the solvency of that fund; however, that accounting ignores the burden that would be faced by the rest of the government later in redeeming the bonds held by the trust fund. Unified budget accounting shows that the majority of the HI trust fund savings would be used to pay for other spending under the PPACA and would not enhance the ability of the government to redeem the bonds credited to the trust fund to pay for future Medicare benefits. To describe the full amount of HI trust fund savings as both improving the government’s ability to pay future Medicare benefits and financing new spending outside of Medicare would essentially double-count a large share of those savings and thus overstate the improvement in the government’s fiscal position. CBO

All along Harry Reid, Nancy Pelosi and Barack Obama have been touting how premiums would be lower under the Health Plan, but even the CBO dismisses that by saying that the differences would be negligible. But wasn’t that one of their selling points to the public?

But of course the MSM is mysteriously silent on this since they are in lock step with the Administration about Obamacare as well as anything else coming out of the White House.

This Administration had touted in the beginning about accountability, so will they actually step up to the plate and admit that this healthcare plan is nothing but a boondoggle? Or are they in such a rush to pass the final push to Socialism down our throats that they don’t care if it will bankrupt our country and future generations?

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