October 21st, 2009
08:14 AM ET
11 years ago

CBO finds Dem bill with public option reduces deficit

 Nancy Pelosi, right, here with Harry Reid, proposes a 'more robust' public option. The CBO analyzed the plan.

Nancy Pelosi, right, here with Harry Reid, proposes a 'more robust' public option. The CBO analyzed the plan.

WASHINGTON (CNN) - A preliminary estimate from the Congressional Budget Office projects that the House Democrats' health care plan that includes a public option would cost $871 billion over 10 years, according to two Democratic sources.

CBO also found that the Democrats' bill reduces the deficit in the first 10 years.

This new CBO estimate, which aides caution is not final, is significantly less than the $1.1 trillion price tag of the original House bill that passed out of three committees this summer. More importantly, it comes under the $900 billion cap set by President Obama in his joint address to Congress last month.

CBO analyzed what House Speaker Nancy Pelosi calls a "more robust" public option - one that ties reimbursement rates for doctors to current Medicare rates, plus a 5 percent increase.

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Filed under: House
soundoff (131 Responses)
  1. Felonious Monk

    Imagine that, Obama saving money and cutting the deficit!

    Conservatives are truly rolling over in their grave, I imagine.
    Funny, a black male president doing better than a white male president. I love it.

    October 21, 2009 10:56 am at 10:56 am |
  2. Andrew

    Even though I know that probably most conservatives will probably dismiss this as a bunch of liberal nonsense I feel maybe some people who still have an open mind on reform (as few as that may be) may see this report and realize that the bill and its effects won't "destroy America and implement a socialist state." And that it's effects may actually be beneficial for the country and the deficit.

    October 21, 2009 10:58 am at 10:58 am |
  3. ThinkAgain

    And two important, effective ways to help fund meaningful health care reform (including a robust public option and eliminating pre-existing condition exclusions) are:

    1. Eliminate the FICA tax cap on income above $90,000. This would generate a huge source of funds. (Right now, no FICA is paid on individual income above $90,000.)

    2. Change the top tax rate to what it was under Ronald Reagan: 39%. Right now, the top rate is 36%; people making higher incomes can afford to pay an additional 3%.

    Are these "taxes on the rich?" Yes, they are. And the wealthy of this country can well afford it. After all, it's the least they can do for this country that has given them the opportunity to create their wealth in the first place.

    October 21, 2009 10:59 am at 10:59 am |
  4. Russ

    Too bad this plan won't fly. Republicants won't vote for anything good for this country if it makes Obama look good. They are more set on revenging their political losses than worrying about the people of this country. Oh, it would also take money from the old white rich Republicans........can't have that. So, sorry to those of you without health insurance or about to loose it for financial reasons. Those of you going bankrupt from medical bills......You will still be without insurance or assistance for some time!

    October 21, 2009 10:59 am at 10:59 am |
  5. Douglas Mc

    If this is true, what's left to argue....get it done

    October 21, 2009 10:59 am at 10:59 am |
  6. Bren

    There is no way that the MAJORITY in our country believe that this Bill is going to reduce the deficit-ESPECIALLY if it contains the public option. And, the moderate Dems/blue dogs do not believe it as well, which is why they cannot get it passed. Fortunately, all articles, reports, polls are now indicating that the Democrats are going to get clobbered in the 2010 and 2012 elections. And, hopefully whatever damaging/destructive legislation that is passed while the Democrats are in power--can be repealed when their power/control is taken away during the 2010 and 2012 elections.

    October 21, 2009 10:59 am at 10:59 am |
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