CBO: GOP Health Care Repeal (H.R. 2) Would Increase Deficit $145 Billion

[kpete]

CBO: GOP Health Care Repeal (H.R. 2) Would Increase Deficit $145 Billion
9:58 am EST January 6th, 2011

The Congressional Budget Office (CBO) http://www.cbo.gov/ftpdocs/120xx/doc12040/01-06-PPACA_Repeal.pdf has an analysis of the GOP’s bill to repeal health care reform. In addition to the very real effect of re-introducing the preexisting condition and eliminating health care for children, the repeal (which will go nowhere and is a waste in time and political theater from the GOP for the base) would increase the deficit:

As a result of changes in direct spending and revenues, CBO expects that enacting H.R. 2 would probably increase federal budget deficits over the 2012–2019 period by a total of roughly $145 billion, plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. That figure consists of the following two components:

• About $130 billion, representing the net reduction in deficits over the 2012–2019 period expected to result from the health care provisions of the enacted legislation (as estimated by CBO and JCT last March), plus

• About $15 billion, representing the reduction brought about by the Medicare and Medicaid Extenders Act of 2010 in the estimated cost of subsidies to be provided through the insurance exchanges through 2019.

It continues:

• Relative to current law, enacting H.R. 2 would, CBO estimates, increase federal budget deficits in the decade following 2019; similarly, the legislation would increase budget deficits in the decade following 2021 and in subsequent years.

more:
http://www.oliverwillis.com/2011/01/06/cbo-gop-health-care-repeal-h-r-2-would-increase-deficit-145-billion/

[ProSense]

1. Over 10 years, it's $230 billion

PDF

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The difference in the time horizons for the cost estimates will also differentiate the estimate for H.R. 2 from that for PPACA and the Reconciliation Act. The budgetary horizon for legislation considered in 2011 will span the fiscal years from 2011 through 2021, two years beyond the period covered by the cost estimate for the enacted legislation. Extrapolating the budgetary effects for 2019 of PPACA and the health care provisions of the Reconciliation Act, CBO anticipates that enacting H.R. 2 would increase federal budget deficits by a total of roughly $80 billion to $90 billion over the 2020–2021 period. Consequently, over the 2012–2021 period, the effect of H.R. 2 on federal deficits as a result of changes in direct spending and revenues is likely to be an increase in the vicinity of $230 billion, plus or minus the effects of technical and economic changes to CBO’s and JCT’s projections for that period.

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[JoePhilly]

3. Yawn.