Thread: CBO deals new blow to health plan (Obamacare)

It was all about saving money... Thank God for watchdogs.


CBO deals new blow to health plan
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By CHRIS FRATES | 7/25/09 3:31 PM EDT

For the second time this month, congressional budget analysts have dealt a blow to the Democrat's health reform efforts, this time by saying a plan touted by the White House as crucial to paying for the bill would actually save almost no money over 10 years.

A key House chairman and moderate House Democrats on Tuesday agreed to a White House-backed proposal that would give an outside panel the power to make cuts to government-financed health care programs. White House budget director Peter Orszag declared the plan "probably the most important piece that can be added" to the House's health care reform legislation.

But on Saturday, the Congressional Budget Office said the proposal to give an independent panel the power to keep Medicare spending in check would only save about $2 billion over 10 years- a drop in the bucket compared to the bill's $1 trillion price tag.

"In CBO's judgment, the probability is high that no savings would be realized ... but there is also a chance that substantial savings might be realized. Looking beyond the 10-year budget window, CBO expects that this proposal would generate larger but still modest savings on the same probabilistic basis," CBO Director Douglas Elmendorf wrote in a letter to House Majority Leader Steny Hoyer on Saturday.

The proposal's meager savings are a blow to Democrats working furiously to bring down costs in order to win support from their party's fiscally conservative Blue Dogs, who have threatened to vote against the bill without significant changes. The proposal was heralded as a breakthrough on Tuesday after Blue Dogs and House Energy and Commerce Chairman Henry Waxman emerged from the White House with agreement on giving the independent panel, rather than Congress, the ability to rein in Medicare spending.

Saturday's CBO analysis caps a tough week of blown deadlines, partisan bickering and fierce intra-party fighting among Democrats. On Friday, the tension between the Blue Dogs and Waxman exploded when Waxman threatened to bypass his committee and bring the reform bill straight to the House floor without a vote. The move infuriated Blue Dogs who have used their crucial committee votes to leverage changes to the bill.

But by late Friday, Waxman said their colleagues had pulled the two groups "back from the brink" and back to the negotiating table.

Still, Hoyer said there was little chance that that the House would pass a health reform legislation before Friday when lawmakers are expected to leave Washington
for summer recess.

Read more: http://www.politico.com/news/stories/07 ... z0MIkjAqvc

I can hardly wait for Congress to go on vacation so we don't have to be on guard 24/7.

I hate feeling this way about those who are suppose to be looking out for our best interest but hopefully in 2010 we can fix some of that at election time.

Cudos to the Blue Dogs !!

If they really want to save money why are they trying to make us pay for illegals and anchors? Lies and more lies.

Want to save money and improve the government,Cut them back to two congressmen and two senators per state, two 4 year term limits for all and put a cap on their pay.