Tuesday, April 10, 2012
Obamacare Would Add to Deficit... A Lot.
By now if you haven't heard of Obamacare and its impending Supreme Court case as to the constitutionality of its requiring all Americans to have health insurance, you are obviously under a giant rock of ignorance. A study is being released today by former Bush administration official and well known conservative economist, Charles Blahous.
Those in the "non-partisan" Congressional Budget Office have stated that repealing this law would increase the national deficit by $210 billion between 2012-2021. This seems like a substantial amount of money, and it is, but it pails in comparison to the approximately $1 trillion the United States is adding to the deficit annually in recent years.
In Blahous' 52-page report, he cites numerous unforeseen consequences in the bill. One of which is that the bill could in fact dramatically raise costs of healthcare for uninsured low or middle-income people as their employers could opt to scale back the coverage provided due to rising costs. The cost control measures such as the planned taxes on high-end insurance plans that would come in to play in 2018 are expected to not generate as much revenue as originally thought. The plan as of now is to use the savings form Medicare to help fund these endeavors, but then that creates the problem of finding new ways to fund the program to prevent it from going the way of Social Security.
This is all being put down by the White House however as they are blaming poor math for Blahous' conclusions. They argue that the bill would actually decrease the deficit by billions. Personally, I am more inclined to believe Blahous...