CMS: Reid Bill Raises Health Care Costs $234 Billion

Bill Makes Health Care More Expensive Than Doing Nothing At All
CMS: “This Bill Would Increase [Health Expenditures] By An Estimated Total Of $234 Billion”

CMS: “…We Estimate That Total National Health Expenditures Under This Bill Would Increase By An Estimated Total Of $234 Billion (0.7 Percent) During Calendar Years 2010-2019…” (“Estimated Financial Effects Of The ‘Patient Protection And Affordable Care Act Of 2009,’ As Proposed By The Senate Majority Leader On November 18, 2009,” Centers For Medicare & Medicaid Services, P.4, 12/10/09)

“Current Law Baseline, Total National Health Expenditures (NHE)… Total, CY 2010-2019… $35,253.3 [Billion Dollars].” (“Estimated Financial Effects Of The ‘Patient Protection And Affordable Care Act Of 2009,’ As Proposed By The Senate Majority Leader On November 18, 2009,” Centers For Medicare & Medicaid Services, P.33, 12/10/09)

“Proposed-PPACA, Total National Health Expenditures (NHE)… Total, CY 2010-2019… $35,487.4 [Billion Dollars].” (“Estimated Financial Effects Of The ‘Patient Protection And Affordable Care Act Of 2009,’ As Proposed By The Senate Majority Leader On November 18, 2009,” Centers For Medicare & Medicaid Services, P.33, 12/10/09)

“Impact Of PPACA, Total National Health Expenditures (NHE)… Total, CY 2010-2019… $234.1 [Billion Dollars].” (“Estimated Financial Effects Of The ‘Patient Protection And Affordable Care Act Of 2009,’ As Proposed By The Senate Majority Leader On November 18, 2009,” Centers For Medicare & Medicaid Services, P.34, 12/10/09)

You can see the CMS Report here!

WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Friday regarding the analysis of the Democrat Bill released last night by CMS Chief Actuary Rick Foster:

“Americans were told that the purpose of health care reform was to lower costs, to bend the so-called cost curve down. But a report released last night by the administration’s own independent scorekeeper shows that the Democrat bill gets a failing grade. This chief actuary is the person the Administration depends on to give it straightforward, unbiased analysis of the impact the legislation would have. This is the official referee talking – so this is significant.

“According to the CMS:
·    The Democrat bill increases National Health spending. (page 19)
·    New fees for drugs, devices, and insurance plans in the Democrat bill will increase prices and health insurance premium for consumers. (page 16)
·    This new analysis shows that claims about the Democrat bill extending the solvency of Medicare are based the shakiest of assumptions.
·    The Democrat bill creates a new long term insurance program (CLASS Act) that the CMS actuaries found faces ‘a very serious risk’ of becoming unsustainable. (page 19)
·    The CMS actuary found that such programs face a significant risk of failure. (page 13)
·    The Democrat bill pays for a trillion dollar government expansion into health care with nearly one trillion dollars in Medicare payment cuts. (page 18)
·    The Democrat bill is especially likely to result in providers be unwilling to treat Medicare and Medicaid patients, meaning that a significant portion of the increased demand for Medicaid services would be difficult to meet. (page 18
·    The CMS actuary noted that the Medicare cuts in the bill could jeopardize Medicare beneficiaries access to care.
·    He also found that roughly 20 percent of all Part A providers (hospitals, nursing homes, etc) would become unprofitable within the next 10 years as a result of these cuts. (page 9)
·    The CMS actuary found that further reductions in Medicare growth rates through the actions of the Independent Medicare Advisory Board, which advocates have pointed to as a central lynchpin in reducing health care spending ‘may be difficult to achieve in practice.’ (page 18)
·    The Democrat bill would cut payments to Medicare Advantage plans by approximately $110 billion over 10 years, resulting in ‘less generous benefit packages’ and decreasing enrollment in Medicare Advantage plans by about 33 percent. (page 10)

“This report confirms what we’ve long known — the Democrat plan will increase costs, raise premiums, and slash Medicare. That’s not reform. This analysis speaks for itself.”

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