CBO Important Info on Debt Impact Health Care Bill

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Senator Jeff Sessions (Alabama)

CBO Issues Important New Information Regarding Debt Impact of Health Care Bill
Wednesday, December 23, 2009

Please click here to see the letter from the Congressional Budget Office.

Please click here to see the December 10, 2009, letter from the Centers for Medicare and Medicaid Services.

Please click here to see video of Sen. Sessions' press conference with Sens. Gregg and Kyl.

A clip of Sen. Sessions on FOX News may be found here.

Sessions' full statement may be found below:

“New information has come to light today that proves that claims by the President and supporters of the health care bill are false, and that, if passed, this legislation will add billions to the deficit.

“The President argued that this legislation would cut billions from Medicare, simultaneously expanding the program for nine additional years, and fully offsetting a spate of new government programs. In actuality, that is impossible. New information from the Congressional Budget Office (CBO) proves that the deficit-neutral score is false, and is based on the Democrats’ use of clever manipulations of accounting rules.

“The CBO reported today:

The key point is that the savings to the HI trust fund under the [Patient Protection and Affordable Care Act] 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 […] 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 of the government’s fiscal position.

“This statement from CBO is clear confirmation of a previous analysis from the Centers for Medicare and Medicaid Services (CMS), which said,

The combination of lower Part A costs and higher tax revenues results in a lower federal deficit based on budget accounting rules. However, trust fund accounting considers the same lower expenditures and additional revenues as extending the exhaustion date of the Part A trust fund. In practice, the improved Part A financing cannot be simultaneously used to finance other Federal outlays (such as the coverage expansions under the PPACA) and to extend the trust fund, despite the appearance of this result from the respective accounting conventions.

“This conclusively shows that the legislation is not deficit neutral, and is only made to appear so by counting the same money twice. In essence, the funding mechanism for much of the new spending is an intergovernmental loan that the bill drafters knew would not appear in the CBO score. Even so, the result is the same: taxpayers will be left holding billions in debt bonds to the Medicare trust fund that must be repaid.

“This dramatically contradicts assertions by President Obama and bill supporters that the bill ‘does not add one dime to the deficit.’ For those senators who have made deficit neutrality a condition of their support, the message is clear: You should rethink your position prior to today’s cloture vote.”

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Taxes in Senate and House Health Reform Bills

House bill

* 5.4% surcharge on incomes above $500,000, or $1,000,000 (married couples).

* medical-device manufacturers: a 2.5% ad valorem tax on wholesalers/manufacturers. Exempts retail products.

* Cap annual worker contributions to health savings accounts at $2,500.

* Close a loophole that could allow pulp/paper manufacturers to claim $24 billion in cellulosic biofuel tax credits.

Senate bill

* 0.9% increase in 2.9% Medicare payroll tax on salaries above $200,000, or $250, 000 for married couples.

* 40% excise tax on “Cadillac” insurance plans on premiums above $8,500 (individuals), $23,000 (family plans).

* Health insurers: $2B industry-wide tax (2011), increasing to $10B per year by 2017.

* Drug-makers: $2.3B annual industry tax.

* Medical-device manufacturers: $2 billion annual tax (2011).

* Cap annual worker contributions to health savings accounts at $2,500.

* Out of pocket medical expenses deductions only for expenses exceeding 10% of income (2017).

* Indoor Tanning Services: 10% excise tax.

*The House bill would close a loophole that could allow pulp and paper manufacturers to claim $24 billion in cellulosic biofuel tax credits.

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wsj.com
* DECEMBER 28, 2009
Businesses to Push for Modifications to Senate Bill
By NEIL KING JR.

WASHINGTON -- ...Senate bill...drawn tentative support from some large corporations/industry groups... [B]usinesses of all sizes oppose the House bill...

[S]upport of business leaders...could help Democrats blunt Republican criticism...bill is bad for...economy.

[S]maller and medium-sized firms have largely denounced the overall effort...

White House spokesman...Gibbs...said negotiations over...final bill would focus on...control[ling] health-care costs, in part by targeting insurance companies that provide plans that are "far too generous."

http://online.wsj.com/article/SB126195440648106747.html

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wsj.com
* JANUARY 16, 2010
Labor's $60 Billion Payoff

...ObamaCare: The 87% of Americans who don't belong to a union will [pay] for a $60B giveaway to those who do.

Ponder that one for a moment. Two workers who are identical in every respect—wages, job, health plan—will be treated differently by the tax system, based solely on union membership.

How exactly is the excise tax going to drive down premiums when a good part of the most expensive plans is exempted?

http://online.wsj.com/article/SB2000142 ... 21692.html

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Download: White House '1-Pagers' Health Reform Law

Source: Centers for Medicare and Medicaid Services

This zip file contains the following one pagers from the White House on several issues in Health Reform. Click here to download.

Health Reform for Women.pdf
Health Reform for Young Adults.pdf
Health Reform for American Families.pdf
Health Reform for African Americans.pdf
Health Reform for Children.pdf
Health Reform for Early Retirees.pdf
Health Reform for Latinos.pdf
Health Reform for Rural Americans.pdf
Health Reform for Seniors.pdf
Health Reform for Small Businesses.pdf
AdvanceNotice2011.pdf
MA enrollment in New England: MedicareAdvantage Enrollment by StateCounty32010.xls