Uncategorized: CBO: House Health Insurance Reform Bills Stay within Obama’s $900 Billion Spending Limit
The Congressional Budget Office released preliminary estimates showing that House leader’s efforts are very close to President Obama’s goal of having a healthcare bill that totals less than $900 billion, but these newly released numbers have not done much to unite House Democrats around a single legislative plan to change the world of health insurance as we know it.
House Speaker Nancy Pelosi (D-CA) has been working for several weeks to negotiate disputes over th final shape of the healthcare reform package while slicing billions of dollars from each of the three $1.2 trillion bills that were approved by House panels in July. As part of the slimming process, Pelosi asked the CBO to analyze competing versions of a slimmed-down bill that would extend health insurance coverage to millions of Americans.
The new report was delivered privately this week to house leaders. The report stated that one of the pieces of legislation that would create a government-run insurance plan would cost around $905 billion over the course of the next decade. An option costing about $859 billion that would create a government-run insurance program that’s more along the lines of what moderate Democrats are hoping for and also include a dramatically expanded Medicaid.
Brendan Daly, a spokesman for Pelosi, stated that the newly released numbers confirm “that the coverage provisions of the House bill will be under $900 billion and we will have a public option.” Daly stated that “no final policy decisions have been made on how to proceed.” House leaders do not expect that a vote will occur on health care reform until sometime in November.
The original house plan had proposed to expand Medicaid eligibility to the poor and to subsidize private insurance for people that are just above the qualification line for the proposed Medicaid requirements that do not have employer provided insurance. To minimize costs, lawmakers decreased the subsidy amount and reduced the number of people that would get insurance from the plan. The compromise package would extend coverage to approximately 95 percent of Americans by 2019, compared with 97 percent in the original bill and just 83 percent today, according to the CBO.
The CBO notes that the report is preliminary and does not take other chunks of the legislation into the package, such as taxes increases and changes in Medicare spending. The report did also not study the legislation’s impact on the federal deficit.



