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Ethan Rome

Ethan Rome

Posted: January 7, 2011 12:32 PM

Boehner's Fantasy Math on Health Care Repeal


Yesterday the Congressional Budget Office (CBO) announced that the Republican plan to repeal the Affordable Care Act (ACA) would add $230 billion to the federal budget deficit over 10 years and $1.2 trillion in the decade after that. Since Speaker Boehner and company didn't like those numbers -- even though they usually praise what CBO has to say -- they manufactured their own. Ezra Klein of the Washington Post took apart the Republicans' fictional arithmetic in an excellent piece you can read here.

Rejecting the CBO's numbers was yet another example of the astounding double-talk and hypocrisy we've heard from the Republicans in their first few days since taking charge of the House on Wednesday. They got elected by campaigning for deficit reduction, but the first thing they did was increase the deficit.

It's clear that there is no promise the Republicans won't break, no principle they won't sacrifice and no fact they won't ignore in order to let the insurance companies off the hook and strip consumers of important protections like the ban on denying care to people with pre-existing conditions.

The Republicans are trashing the nonpartisan CBO report because it's conclusions are inconvenient. Instead they cooked up their own numbers about the ACA costing money when it really saves $230 billion in the first 10 years and $1.2 trillion in the second decade.

And the impact of repeal on the federal deficit is only part of the problem. The Republicans insist on calling the ACA "job-killing." It's exactly the opposite -- it creates jobs. A report out today by Harvard economics professor David Cutler concludes that repeal would destroy 250,000 to 400,000 jobs annually. Over the next decade, that's up to 4 million jobs killed by repeal.

The Republicans' reckless repeal bill will put insurance companies back in charge of our health care and restore the 'anything-goes' premium rate hikes that are crushing consumers and businesses. Repeal means letting the insurance companies deny care to people with pre-existing conditions and run roughshod over consumers.

The health insurance companies are certainly getting what they paid for in the 2010 elections.

And what do the Republicans want to replace the new law with? Nothing. They're referring that question to House committees that will deliberate for months and play political football with our lives and health.

When the Republicans vote for repeal on Jan. 12, they'll be telling seniors they have to pay back the $250 donut hole checks they received to help buy prescription drugs. They'll be booting young adults off their parents' health plans. They'll be taking away people's newly won freedom from fear of insurers denying their care, dropping people who get sick and imposing double-digit premium hikes with impunity. The Republican repeal plan will force nearly 900,000 American families to go bankrupt because of huge medical bills.

We've finally gotten the insurance companies off our backs, and the first thing the Republicans want to do is put them back in charge.

You can join the fight against repeal here.

 

Follow Ethan Rome on Twitter: www.twitter.com/@HCAN

 
 
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09:59 AM on 01/11/2011
Something should be done about healthcare. Its ridiculous that health insurance is so unaffordable. Nobody wants to pay for people who want everything handed to them however there are other groups that could benefit from a healthcare program.
06:17 PM on 01/10/2011
Obamacare is UNCONSTITUTIONAL. Hold Congress Accountable: Take the Pledge or Walk the Plank! therepealpledge(dot)com
10:24 AM on 01/08/2011
The for-profit health care system is morally repugnant, corrupt and inefficient. When you see a republican's lips moving while discussing health care you can be sure he or she is lying. Both parties use the CBO for partisan purposes feeding it fanciful data in order to get the desired result which ends up having little relationship to reality.
11:51 AM on 01/08/2011
Name a proposal, plan, or agenda that Democrats have submitted before Congress to reduce the astromonical debt that is crushing this democracy? Earmarks galore, utopia promised, big brother will do it for all of you who just don't get it, and that means running the auto industry and making sure unions get theirs and yours, the crooked banks, the bad wall street (many are on his staff), and spend spend spend....name something that falls within the budget....oh, I forgot, two years and counting and still no budget....does he need another Czar to figure it out while Daly sets him up for another four years....
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carbolaw
03:02 PM on 01/08/2011
Well let's see I seem to remember the Democrats putting several Health Care reform proposals together that would significantly reduce the debt - this includes the current Health Care reform, but the reform with the public option and even single payer had an even better outcome.  Further, I seem to remember the Democrats proposing that we not extend the tax cuts to the richest 2% of Americans and this also would have reduced the deficit.   I also seem to remember that the pay-go plan was initially a Democratic proposal, the ARRA was a law that long term prevented a deeper economic crisis and thus reduced the long term deficit. Finally, the support for the auto industry has been one of the biggest success stories since the Bush induced economic collapse.  It is awfully difficult to argue against this success.
11:40 AM on 01/11/2011
Well lets see the last time the budget was in the black was when Bill Clinton was president. If I'm not mistaken he was a democrat. Since then we've had for the most part republicans in control ...except for the last two years and if I'm not mistaken republican senators filibustered almost everything of importance including reducing the deficit. I think that's what the Bush tax repeal was about. Again if not mistaken, the treasury has made made money on the loans to the auto industry and some of the banks.
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08:37 PM on 01/08/2011
fanned and faved. the market does NOT account for human dignity (and inherent rights). it's nice for labour exploitation, but not so much for health and wellbeing.
09:18 AM on 01/08/2011
I marvel at how some people think Republicans are good with numbers when they can't remember how to count to 21 once their shoes are off.
02:18 PM on 01/11/2011
Republicans are great with numbers as long as they limit themselves to integers between 0 and 1. And any integer divided by zero represents the deficit we can easily expect from a government led by Republicans.
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thinklib
I will not mince words.
11:49 PM on 01/07/2011
How can anyone believe a single word of this article given the author's background.

There is more truth in this article: http://www.nytimes.com/2011/01/07/opinion/07brooks.html

Plus, The Spectator has leaked email from the CBO saying the repeal of HCR will save more than $500 Billion. Look it up.
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ranchero42
Taunt him with the licence of ink...
02:28 AM on 01/08/2011
Oh, yeah. All he's got is 'The Spectator' (roll eyes).
11:54 AM on 01/08/2011
whatever - do not read anything that might bring balance or information - yawn
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carbolaw
02:56 PM on 01/08/2011
Wrong, there is no "leak" from the Spectator, the Spectator instead has taken the report from the CBO that has been public for nearly a week and taken the cost portion of the report and ignored the revenue portion.  You see the CBO report that the Spectator is referencing is the same one referenced in this article and that report shows that expenditures will be reduced by $540 billion and revenues will be reduced by $770 billion, for a net effect on the deficit of an additional $230 billion added to the deficit if the HCR is repealed (this is over the next 10 years with the expectations for the following ten years to be even worse for the deficit).
11:28 PM on 01/07/2011
I understand that our elected congress people get a very good health care package along with the job. If that is true, I'd like to see their health plan, deductibles, co-pays, denial of treatment or medication clauses, family coverage, etc. If they have a great health plan then I want what they have. If their health plan is adding to the deficit as they claim our new plan might, then I would like to do the math and repeal their health coverage. Can someone in the "know" please share what we are paying for their health packages? I'm sure many of us would like to see that and do some Boehner math of our own.
10:47 PM on 01/07/2011
Boehner cried thru math class, he never really got how the adding and subtraction thing worked.
09:57 AM on 01/08/2011
Addition = higher profits.
Subtraction = taxation.

At least that's what my Texas-approved math book says.
08:40 PM on 01/07/2011
As others have pointed out, the math here is all wrong. The health package is NOT going to save money. Trust your intuition on this one if you don't believe the honest analysis.
08:25 PM on 01/07/2011
TALKING POINTS to defend the health care bill and defeat Republican attempts:

Democrats should defend the health Care reform bill by highlighti­ng the individual benefits of the Health care bill as listed below. The polls on Obama care individual features show that they are still very popular with most Americans. Democrats, progressiv­e journalist­s and public should ask these questions in public debates and forums.
* Do you want to ensure that your children can never be denied health insurance by insurance companies, irrespecti­ve of their health conditions­?
* Do you want to make sure that you and your family can never be denied health insurance, irrespecti­ve of the preexistin­g conditions­?
* Do you want your children to have the option to continue on your health insurance policy till the age 26, in case they have not found a job with health care coverage?
* Currently. uninsured people crowd the emergency health care facilities­, even for non critical reasons, just because they do not have insurance. The health care bill will offer affordable insurance for all, so that they can proper care at regular doctor offices for normal care which reduces the insurance cost for all.
* Do you want insurance companies to spend most of the revenue on health care and preventive care rather than siphon off profits for wall street fat cats?
* For the self employed and small businesses­, this health care bill provides the option to join insurance exchanges and buy insurance at lower cost.
11:38 PM on 01/07/2011
Right on. I am a systemic lupus patient and I can tell you that while I was being treated in the ER at various times for lupus, I have seen emergency docs looking over a child's rash, or the flu (when they should just stay in bed). People with no health care love their families like anyone else. When someone gets ill and they can't tell if it is minor or serious, they have no where else to go but the local ER. And as for denying insurance to a child with a pre-existing condition, shame on them. That has been the most immoral thing to date in a country with high living standards and supposedly equality for all.
04:05 AM on 01/08/2011
Yep, those are some talking points. Big utopian promises of 5-star healthcare for all that the HCR law cannot/will not possibly deliver.

Where is the money going to come from to pay for all of this? Obama promised in about 500 speeches that the HCR law would cause premiums to go down. Of course, the opposite is occurring--premiums across the board are going up (and why wouldn't they with all of the expensive goodies the law requires insurance companies to pay for?) How will this make health insurance more affordable, and how are people who could not afford health insurance before Obamacare going to comply with the law's mandate? Can you answer that question?

Further, even if premiums weren't increasing, why would anyone comply with the mandate and purchase an expensive health insurance policy if they can just pay the tax penalty which is a fraction of what premiums would cost? Any thoughts?

Finally, if an individual is young and healthy why would he buy an expensive healthcare policy if the tax penalty and cost of regular check-ups combined would be a fraction of the cost? There's no incentive to purchase insurance unless and until the individual is diagnosed with a serious illness or suffers a serious injury. As you know, the insurance companies can't turn anyone down because of a preexisting condition so why pay for something before you need it?

It's going to be a trainwreck and your talking points are a joke.
09:58 AM on 01/11/2011
Premiums have been going up at ridiculous rates for many years. This Healthcare Reform hasn't even been instituted fully, so how can you say it's making rates go up?
05:31 PM on 01/07/2011
We've only been discussing this issue in earnest since 1993. There's been no "jamming" down the throat. In all that time, the GOP has not provided one reasonable suggestion as to what to do about improving health care in this great country and how to reform the insurance industry's strangle hold... at least one that didn't give everything on a silver platter to the insurance companies at the expense of the middle class and the even less fortunate. This is what the Koch brothers want for their plutocratic fantasy, so their GOP minions try to abide.

This is all about political points. What does Boehner care... he's and his family (and the rest of congress) will have socialized medical care for the rest of their lives at our expense.
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mumtaz nepal
05:26 PM on 01/07/2011
If the Republicans really cared about Americans having health care, they would have something ready to go to amend the PPACA. They do not. The GOP does not care about giving people health insurance. They care about maximizing profits for the health insurance industry.

The GOP can campaign, but they cannot govern. They can't even tell the truth and correctly identify reality. We've seen this over and over again in the past 40 years.

I'm beyond fed up with every single Republican I listen to. Now we are stuck with this do-nothing, showboating House for the next two years. The Dems have to name every GOP theatric for exactly what it is. At least the comedy shows now have guaranteed material.
12:03 PM on 01/08/2011
To quote a dem..."If Washington were serious about honest tax relief in this country, we'd see an effort to reduce our national debt by returning to responsible fiscal policies." Barack Obama, Speech in the U.S. Senate, March 13, 2006. Name any reduction in spending over the last forty years....too long a period of time....okay, the last two years. Class warfare mentality is just plain old-fashion dumb.
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nappyman
Hatred is gained as much by good works as by evil
04:47 PM on 01/07/2011
We went to war with less facts, you think a little thing like math gonna stop these guys. That's the problem with us liberals, we expect people to play fair and by a code of ethics.
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HUFFPOST PUNDIT
OSCPJ
Want it? Work 4 it. No 1 has ever drown in sweat.
04:38 PM on 01/07/2011
A full reading of the CBO report? 
Repeal would save 540B in Spending.  So how do they get to a deficit reduction of 230B?
Repeal would do away with 770B in Tax "Revenue".

Actual reading of the Report from the website?  Not going to happen here.  Not even a link.  But here it is.  Please read, only two pages. 

http://cboblog.cbo.gov/?p=1759




Increasing the Taxes to raise 770B, while spending out 540B will Help Americans how?


I'm not rich, google what an E8 over 18 in Tampa Makes or check out a GS13 in Tampa.  Progressives have to realize that the working class, those paying taxes (Net Taxes as only 53% of Americans Pay Net Taxes and the rest Receive from those taxed) aren't happy with tax increases going for those that don't work. 


Redistribution of monies?  You are either taken from, or take from others. 
06:47 PM on 01/07/2011
So what wrong with spending $540B to save $230B? That's really smart right?
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commonsense68130
04:36 PM on 01/07/2011
This just in... CBO says it will reduce spending $540 billion. Can we really trust the CBO?

http://spectator.org/blog/2011/01/07/breaking-cbo-says-repealing-ob
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HUFFPOST PUNDIT
OSCPJ
Want it? Work 4 it. No 1 has ever drown in sweat.
05:32 PM on 01/07/2011
No.

Anyone actually read the CBO Directors Findings?

http://cbo­blog.cbo.g­ov/?p=1759

Heres the CBO Directors webpage.  Please read the report.

"We have been asked to provide the revenue and direct spending components of that total. Extrapolat­ing the estimated budgetary effects of the original health care legislatio­n and accounting for the effects of subsequent legislatio­n, CBO anticipate­s that enacting H.R. 2 would probably yield, for the 2012-2021 period, a reduction in revenues in the neighborho­od of $770 billion and a reduction in outlays in the vicinity of $540 billion, plus or minus the effects of forthcomin­g technical and economic changes to CBO’s and JCT’s projection­s."

I'm not a Tea-bagger­.  But taxing Americans 770B, to pay out 540B and then calling a "Savings" is wrong, more so when the taxes will be collected in full over that time frame while outlays will not totally kick in for a few years.

Realize that 6 years of spending comes to a median costs of 90B in outlays each year.  The Taxes of 770B over 10 years comes to additional taxes of 77B a year.  Realize the CBO can only use the parameters the Democrats gave them. 

So I'm sure tax reciepts are expecially rosy in the report.

You guys are supposed to be "Progressive", but yet these taxes are not based on Class.  The "Rich" weren't  taxed, only those with insurance or spending on medical care. 
06:50 PM on 01/07/2011
And let's be clear - these taxes will never touch the rich. They have unbelievable resources at their disposal to avoid any ramifications from this bill. These taxes will be on the backs of the middle class.
04:19 PM on 01/07/2011
The CBO must use the numbers it is given even if those numbers are based on faulty assumptions. It is irrational to think that a plan to extend health insurance to 30 million Americans is going to shrink the deficit. It is irrational to think that it will create jobs or that repealing it would cost jobs. Where does the money come from to create the jobs? Things don't happen in a vacuum. The primary problem with today's health care system is the cost. The cost is high because consumers don't care about that cost. On average they pay only 11% of their medical bills. If consumers don't care about costs then nobody cares. That cost will go up because there will be pressure to compete in other areas. If money wasn't an issue you nobody would drive a Kia. Nobody would have a flip phone. I could go on. Cost is an important thing. Consumers need to face more of that cost so that companies will find ways to lower costs while still providing a good service.
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serz4u
GOP: Because, hey, survival of the fittest! ™
05:02 PM on 01/07/2011
Ours is a more market-based system than those in every other Western nation (which virtually all have government run universal coverage), and yet our costs are twice theirs:
http://www.cepr.net/calculators/hc/hc-calculator.html
And they live longer.
05:17 PM on 01/07/2011
Ours is not a market based system at all. A market based system would have consumers paying as much of their own costs as possible. In our system consumers pay on average 11% of their direct health related costs. That is a lower amount than some of the so called universal care systems. The reason that they live longer isn't related to health care. We have higher accidental death rates and a MUCH higher obesity rate. If you look at the life expectancy of someone who is 65 for instance it is higher in the US than in western Europe.
12:44 AM on 01/08/2011
The cost of health insurance is killing any American who dares to get ill. One bad diagnosis and you will go through your savings, sell off anything of value because your bill of 658,000.00 will be your death. Whatever your co-pay, it will eventually be more than you made in a year at your job. You're out of work, can't go back to work. If you don't pay off that balance right away, you're in collection. I nearly died in 1997, and 7 solid weeks in the hospital even back then was astronomical. I had to pay outside of hospital labs, physicians, meds. I couldn't work. Without a job, life was a train wreak. Because of this illness, I am uninsurable. A close friend just moved because her health insurance went up 300.00 this month. Her insurance is higher than her rent so she moved. 1400.00 a month with no pre-existing conditions, takes one medication at the age of 58! People who lost their jobs, give up health insurance to pay the rent, feed their kids. I have a flip phone. It is a 4 year old, cheapest in the line no frills phone. My meds are costing me my food money. I cannot work a regular job but as restricted as I am, I do whatever odd jobs that won't put me back in the hospital again. Without help, most people facing a serious illness simply run out of money. Cost if freaking important.