July 16, 2009
Posted: July 16th, 2009 01:42 PM ET

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NEW YORK (CNNMoney.com) - The health reform bills released so far would increase government spending on health care without sufficiently reining in health care costs.

And at least initially they aren't likely to significantly lower premiums for the majority of Americans with employer-sponsored health insurance.

That's the sobering takeaway from testimony Thursday by Congressional Budget Office Director Douglas Elmendorf.

Elmendorf's preliminary conclusions were based on a bill jointly released by three committees in the House this week and another bill passed by the Senate health committee on Wednesday.

"The creation of a new subsidy for health insurance ... would by itself raise federal spending on health care. ... [T]o offset that there have to be substantial reductions (on the tax or spending sides of the ledger]," Elmendorf told the Senate Budget Committee. "The changes we've looked at so far don't represent the fundamental change on the order of magnitude that would be necessary."

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Filed under: CNNMoney.com • Congressional Budget Office • Health care


yuri   July 16th, 2009 3:32 pm ET

OK, then what'll reduce the cost, in your opinion, CBO? It is vexin' to see a lot of people attackin' the plan, and nobody seems to be offerin' Plan B, including those idiotic Blue Dog Dems.

I give enough already   July 16th, 2009 3:32 pm ET

Even this administration's accounting executives feel this health proposal is a money looser not money saver and he started in January 09!

USMC - Mike   July 16th, 2009 3:31 pm ET

That's why there can be no health care plan that includes employer-based or private ins-based health care ...

It MUST be all single-payer...

end of story ...

kishen c.rao   July 16th, 2009 3:29 pm ET

add CBO to the credit another lobbying guys...AMA, hospitals, now CBO, insurance silly....stupid....be practical....ok

Rick CT   July 16th, 2009 3:28 pm ET

Won't matter. The key is rushing this through for some ceremonial signing. Getting it even somewhere near close to right isn't a consideration.

inat   July 16th, 2009 3:19 pm ET

Respect to CNN for posting an article that does NOT support Obama's agenda. I was beginning to lose faitn in CNN

Melissa   July 16th, 2009 3:19 pm ET

What the Democrats are offering is a heck of alot better ideas than the Republicans. It will take time to see results. Especially since the insurance companies will fight tooth and nail to find ways to keep the rates exactly the same as they are now.

I would rather have an increase in taxes than continue as things are now. No more padding the pockets of the rich and greedy.

Democrati Ignorati   July 16th, 2009 3:19 pm ET

Quick...pass the bill before anyone gets a chance to read this article.

single mom   July 16th, 2009 3:17 pm ET

Um, DUH!!
The politicians can't get Medicare and Medicaid straightened out. BUT they want the American people to trust them with all of the healthcare? What are they on and where can I get some?
Oh, I forgot - I'm a regular person, so I won't be on the same plan as Congress.

Matt   July 16th, 2009 3:17 pm ET

Health bills won't reduce costs.

Duh!

Plus it will add TRILLIONS to the National deficit and debt.

Wake up America!

We can't pay for the programs we have, we need this incompetent 'administration' to stop creating more things we can't pay for!

Marc   July 16th, 2009 3:17 pm ET

Now this is a well based objection to the Health Care Reform (FINALLY!), as it is now being proposed. Good, now it's up to the gov. to check if the data presented by CBO is accurate (which it is most likely to be) and then make the necessary adjustements to the bill.
Health care reform is needed, but if the bill really has problems in it then the bill has to be changed and its problems corrected.

skyhawkdriver   July 16th, 2009 3:09 pm ET

Until every member of congress signs on to and participates in this so called reform it should never become the law..or is this plan not good enough for the royal class that has become the two houses of congress??..were there really people who thought this was going to save money??..with the federal government involved??..hahaha!!gotcha!!

Sam Sixpack   July 16th, 2009 3:01 pm ET

Money, shmoney. Who cares? We'll believe anything. It's just another proctology exam - bend over!

The Lonely Libertarian of Liverpool NY   July 16th, 2009 3:01 pm ET

Really now? Hmmmm and we knew the bailouts were not going to help main street workers, but the Government went ahead and did it anyways. Now all those banks are sitting pretty with record profits and the main street American is homeless, starving and begging for help.
So what makes you think that any amount of true decision making is going to stop this congress and this President from spending another three trillion dollars with little or no benefit for the average citizen?

inofritzn   July 16th, 2009 3:00 pm ET

Liberals are funny and dangerously ignorant. Glad to see some people in power still have a functioning brain. Lib:"People that work hard or smart in life and make it should take care of those who don't " HAHAHAHA

JGB   July 16th, 2009 2:59 pm ET

No kidding!! Does anyone really think anything the government does would reduce costs?? Wake up people, this will cost us dearly!

Mark,B'ham,Al.   July 16th, 2009 2:57 pm ET

To cut cost you need Tort Reform in which the insurance companies, hospitals and doctors pass the savings to the patients. Streamlining the papework will cut cost too, but you had better expect no privacy since hackers can break into your records because no computer is safe. You can also cut cost by cutting quality and quanity but the dems do not like that acknowledge but know it will happen as it has in the socialized medicine pprograms. The people recieving government assistance need to foot part of the bill so they will appreciate what they are being given by the taxpayer.

Scott, Tucson   July 16th, 2009 2:53 pm ET

People read the health care bill, it's a can of worms. It's no wonder our politicians have exempt themselves from having to enroll in it, if I had a choice I wouldn't either but we're not going to be given a choice.

Trade Freedom for Security, Lose Both   July 16th, 2009 2:50 pm ET

How can anyone possibly think that Government, with its long history of rampant cost overruns, conflicting rules, layers upon layers of useless and inefficient bureaucracy, and redundant programs and departments, reduce the cost of anything?

Julia Byrd- Hayden Idaho   July 16th, 2009 2:50 pm ET

No, but the OIG is working hard to catch all the criminals that are fradulently billing Medicare and Medicaid for services that were never provided. You can read it weekly, you would no believe the amount of professionals, doctors, lawyers, others that are constantly billing for services not provided. Example: From the office of the Attorney General, now this is what will reduce healthcare, ins. costs.
CUOMO ANNOUNCES TAKEDOWN OF INSURANCE FRAUD RING WHICH INFILTRATED NEW YORK HOSPITALS –
“The Levy Enterprise” Paid Hospital Employees for Confidential Patient Information, then Lured Patients into Unnecessary Treatment for Minor Motor Vehicle Accidents, Submitting Over $1 Million in Phony Insurance ClaimsCuomo Puts Hospitals Across the State on Notice After Bringing Felony Charges Against Over 20 Individuals and Corporations Involved

mike   July 16th, 2009 2:49 pm ET

Go away for vacation somewhere.

Go to agentina..

No one famous   July 16th, 2009 2:49 pm ET

Doesn't matter what the CBO reports. We have a president that is gunho to spend trillions of dollars that we do not have!

To BHO – keep pushing this over-priced government socialist program down the throats of most Americans who do not want it. Great job!

AndrewCPA   July 16th, 2009 2:49 pm ET

What??? I thought this great plan would save us all money. Maybe our eleceted officials should start re-thinking this grand idea. Many of my friends (Dems/Repubs/Ind) all feel the sameway... no way on this. Talk about a big waste of money and time they are spending on this. This will make all of us suffer in lines, increased fees (I am sure this will happen they are just not telling us that yet).

I am happy with my medical insurance. I pay my share, my co-pays, and other fees. Are they high, to a point, but I am in control, I have never had an issue.

Fla.   July 16th, 2009 2:47 pm ET

The idea is to reduce healthcare costs over time through increased competition. Of course, costs will not reduce initially. The public option will take time to implement for us.

This healthcare reform needs to pass now–the sooner the better to get the process started for ALL Americans. Time is of the essence when people's health is at stake.

TangledThorns   July 16th, 2009 2:46 pm ET

Ugh, this reform is only here to appease the Lefties, nothing more. It'll ruin all the quality care we currently have without reducing costs.

Fair is Fair   July 16th, 2009 2:46 pm ET

Is this really a surprise???

Before the left wing goes off on the phantom $150 Billion in medicare and medicaid reimbursements that the Obama adminstration says it "negotiated", please consider this – physicians and hospitals accepting medicare / medicaid payments are breaking even with these payments – AT BEST. In order to recoup another $150 Billion, the healthcare providers (doctors, hospitals, pharmacies) are just going to do what they've always done, which is cost shift to holders of private insurance. Simply put, if they don't, they won't be able to practice medicine.

And before the left wing goes off on those "greedy, for-profit insurance companies", please consider this. Insurance of ANY kind, be it health, auto, or homeowners, is by definition a contract whereby the parties involved share RISK. The insured pays premiums as his or her part of the deal, and the insurance company provides payments, sometimes more than the premiums received, sometimes less, as their part of the deal. So tell me – who here is willing to play the part of the insurance company, accepting this RISK, without a profit motive?

Tom   July 16th, 2009 2:44 pm ET

Hahaha. I've known this from Day 1. The sad fact is that the Democrat leadership and Obama would still pass the bill, no matter what the cost, as they care more of pushing the agenda than the consequences.

Sadly, some folks still believe in the fairy tale of the 'free lunch.'

I agree that the health-care system needs reform, but what about tort reform? Allowing liberty-conscious Americans to buy health-insurance across state lines (why is this illegal?)? Not using the tax code to tie health-insurance to employment, which penalizes those self-employed and those jobless?

Obama Victim   July 16th, 2009 2:44 pm ET

let's review please......does not lower cost............huge tax increases to pay for it.....rationed care...and it does not even cover everyone............so this is a good idea because??????????

Lisa, Saugus MA   July 16th, 2009 2:42 pm ET

What does it take Congress when your own budget office says your plan isn't going to be effective?

I think Republicans who are thinking of signing on to this bill better think twice. When this hits the fan (and it appears that it will), the American people will only blame those who passed this....democrats!

I am an independent who voted for Obama. My kool-aid must have been spiked with something and now that I am more clear headed again, I can see that Experience should have prevailed over charm and bloom of inexperience.

I want lower health care just like the next guy does but come on...if it means taxing us more and not even having our premiums lowered with the possibllity of having to stand in long lines for care is nuts. I also heard on CNN that the plan offered by the president will still leave some 39 million without coverage. What's that all about?

Stuffit   July 16th, 2009 2:40 pm ET

Oops! Somebody's mis representin'

Nelson Colorado Springs Co.   July 16th, 2009 2:33 pm ET

What wrong with health care reform. need to take medical treatment and prescription out of insurance company hand and let the doctor do their job. Because sometime the doctor will write a prescription or a treatment but you can have or they want do it not coved by insurance. The hospital are losing money to uninsured. They should do a study on how money hospital lose a year on this. Like President Obama say "if you have insurance and like it keep".

sifto77   July 16th, 2009 2:29 pm ET

The democrats are trying to pad the pockets of their supporters, the lawyers, while planning to screw the doctors. When they decide to regulate the lawyers since it is our "right" to be represented equally–that is when I will take them seriously. I hope every American is prepared to do their own heart surgery–because you won't have anyone left after Obama is through with the health care system. I am an RN and I do NOT support this health care fiasco. I resent Obama standing before the cameras lying and saying he has Nurse support. HE DOES NOT. We are not all part of the liberal lemming set. If he has support of a few "association, union nurses" that is their problem..Do not paint us all with the same brush. We are not all "union lemmings"!

johnnie   July 16th, 2009 2:28 pm ET

The CBO is so (BOGUS) they are (GOP) controlled, their time is about up, The (Republicans) are not (SLICK) they dont have the (power) they use to have to (manipulate) numbers. I would to see how many (republicans ) run that branch. The (CBO) in in concert with the (rite wing conspiracy) Douglas Emendorf i betca is an (right winger) come on (CNN) research that (GUY).. The (CBO) has been in the (republicans) pockett for a long time. And (CNN) knows this will create a stir of emails ,from that false network crowd,(FOX NEWS). The Health is the best thing to happen to america, dont fall for the (LIES). The (CBO) is tool of (RIGHT WING AGENDAS).No matter it going to (PASS) The CBO is a (JOKE)..........

DoneWithDems   July 16th, 2009 2:25 pm ET

The health reform bills released so far would increase government spending on health care without sufficiently reining in health care costs.

But by all means let's rush it through!!

Lord, help us........

Bobsy   July 16th, 2009 2:24 pm ET

This is going to be comical...watching liberals spin this one

Jeff in Atlanta   July 16th, 2009 2:24 pm ET

Oh oh. Guess that guy will be out of a job soon, career ruined, etc by the obama secret service.
Let's just watch how they go after Elmendorf for having a mind of his own. Nice to have someone with enough brains and backbone to talk about reality rather than just talk, ie obama.

GI Joe   July 16th, 2009 2:22 pm ET

I'm a little baffled by something.

In an ad against taxing sugar-based drinks, it says "Taxes don't make people healthy".

But, a few months ago when tobacco tax rates were raised, it was to "Make people healthy".

Can someone explain?

Bold move   July 16th, 2009 2:19 pm ET

At least someone is being realistic about the UHC plan

Candy West Virginia   July 16th, 2009 2:19 pm ET

Why are republicans willing to spend trillions on a war or bailing out banks or even rebuilding a foreign country yet don't want to spend a dime on American citizens?

Jesse   July 16th, 2009 2:13 pm ET

Come on that cannot be true. Whenever the government has stepped it has worked so well. I mean take our stimulus. Obama said we would create 4 milion jobs and we have lost 2.6 million since then. Government is always the answer to these idiots and they are never right.

Marty, Grand Rapids Mi   July 16th, 2009 2:12 pm ET

First of all, single payer is the only way we can truly reduce the cost of health care in a significant way.

That being said, if the government plan premiums are not going up (because they can spend 95 cents on the dollar on medical costs) and employer premiums are going up (because only 78 cents on the dollar goes to medical costs, they need to pay wall street), then why wouldn't employers jump ship to the government plan and save money? Wouldn't this reduce the cost per person and/or force private insurance companies to reduce their profit margin so they can remain competitive? I thought that was the whole point of a government plan. This analysis doesn't seem to add up.

Dont blame me   July 16th, 2009 2:10 pm ET

And on page 16 or 18 of the bill it makes and new INDIVIDUAL health care policies ILLEGAL.

Individual Medicare SUPPLIMENTAL policies will also be ILLEGAL.

Your only option will be to get GOVERNMENT health insurance.

And guess what, OUR congressmen and senators won't be getting THAT version of GOVERNMENT health care, so why should we???

*** WAKE UP AMERICA ***

Chris   July 16th, 2009 2:09 pm ET

Shock, government control (of anything) does not reduce costs.

This is not new to those who study history and the facts, but it is a shock to the liberal mindset.

Henry Miller   July 16th, 2009 2:08 pm ET

Once again, objective analysis exposes the politicians. lies.

The last time the CBO debunked the politicians lies about the costs of socialised medicine it was only a week or so before a more politically correct set of "facts" showed up. The same thing is no doubt going to happen again.

Dave   July 16th, 2009 2:05 pm ET

and did anyone except the Obama Administration really believe that any thing included in the current legislation would actually reduce Health Care costs?

Wait, I know the answer – it's President Bush's fault. This is what our current Government is taking us to; SPEND us into oblivion, have a very small % of the public (less than 5%) pay for the vast majority (over 75%)of Government services and in the process KILL millions of jobs, and when anything goes wrong and our deficiet just KILLS our beloved country, Just blame President Bush

Way to go Dem's

Operation Crush Rush   July 16th, 2009 2:00 pm ET

With people like Limbaugh telling his wealthy callers and listeners how to hide their money in off-shore accts., and other tools,so they cant be taxed,its no wonder.What a great American he is.Not.

audacity of a dope   July 16th, 2009 1:59 pm ET

What is this you say????? BOBO lied to us, just like the Porkulus Bill.I thought he cared about all of us. Thanks BOBO the Clown four and the door

Dutch/Bad Newz, VA   July 16th, 2009 1:59 pm ET

Looks like they're going to have to start from the drawing board.

Melaney Tidwell   July 16th, 2009 1:54 pm ET

What the dickens is the government trying to do to the US? They are trying to set up a dictatorial health care system that promises poor care at higher taxes and no lowered costs.
What the dickens???

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