Health Care Shocker!: Reform Will Add to, Not Reduce, Government Deficits


Via Instapundit comes a gloss at Legal Insurrection on an AP revelation that nobody (read: 300 million Americans minus about 400 Democratic pols) knew all along. ObamaCare is going to add to deficits, not reduce them. From the AP:

A report by economic experts at the Health and Human Services Department said the health care remake will achieve Obama's aim of expanding health insurance — adding 34 million Americans to the coverage rolls.

But the analysis also found that the law falls short of the president's twin goal of controlling runaway costs, raising projected spending by about 1 percent over 10 years. That increase could get bigger, however, since the report also warned that Medicare cuts in the law may be unrealistic and unsustainable, forcing lawmakers to roll them back.

Psst! Want a hot betting tip? Put down your current or future Medicare premiums on "unrealistic and unsustainable." More here.

Reason's Peter Suderman has been all over this like Ohio cops on a chihuahua.

And here's's 3 Reasons Healthcare Reform Won't Cut the Deficit by One Thin Dime:

NEXT: Friday Funnies

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  1. One question I’d like to know the answer to is, once we get past the point of “unsustainable” or point of no return, if you will, with these programs, what happens?

    1. We can watch Germany, France & the UK to find out.

      1. Watching Greece right now. The looters have run out of productive citizens so they have to start fleecing citizens of other nations.

      2. The nice thing about being in a more conservative country in general is getting to learn from the mistakes of others.

    2. Keep printing money, and invest in wheelbarrows.

    3. Ever see Logan’s Run?

    4. The shit will hit the fan when the apathetic masses realize what has happened while they were busy watching Idol and Dancing with the Stars. The silver lining may be that citizens begin to take their responsibility seriously – most people spend more time researching a restaurant than they do the candidates who will be running this country.

      1. “most people spend more time researching a restaurant than they do the candidates who will be running this country.”

        That makes sense. You actually get to choose the restaurant you want to go to.

    5. You create another program. Gov’s work at shuffling things from one program to another, but never eliminate old ones of course.

      But the “unsustainable” point you ask about will eventually weigh the whole thing down and the gov will find itself unable to feed itself. So it will enslave openly.

    6. I’ve been trying to fight the sense of impending doom by thinking of possible positive developments that will counter the coming financial disaster. As government-run health care becomes shittier, and people find that they need to go outside the system to get what they need, lower-cost, pay-cash private clinics and hospitals may grow even if they have to do so in some place like Mexico or Singapore.

      1. Possibly accompanying this will be the growth of an international catastrophic health insurance industry, in which someone in the U.S. can buy insurance that pays for medical procedures performed offshore.

  2. Meanwhile USE Network is showing “National Treasure” this weekend, because how better to “deal with a national debt of 1.3trillion”.

    Hey, they were only off by an order of magnitude. NICK CAGE. move along nothing to see here.

    1. “USA Network” even.

      1. Diane Kruger makes me forget about things like deficits and loss of freedom. The depths of depravity I would subjugate that woman to are indescribable.

        Plus I like both movies and am looking forward to the third coming out next year.

        1. “The depths of depravity I…” Does it involve a cartoon flower-duck walking all over her? 😉

          1. Walking, and many other things all over her.

            1. promises, promises 😉

      2. “USE” seemed appropriate.

  3. All of these people worried about money and deficits and stuff are just racists who want old people to die.

    1. Congress is full of old people. So, yes, i want old people to die. ASAP.

      Fucking worthless Superflus.

  4. It’s nice to be a libertarian. All you need is an Ayn Rand novel and a moving goalpost and you win every time on the internets!

    1. It’s nice to be a Demopublican. All you have to do is lie, lie, lie, and keep your head planted firmly up your ass.

      1. Pics or it didn’t happen

        1. Hey! Knock it off!

      2. The actual politicians lie, lie, lie. Their rank-and-file supporters just need to have an endless ability to swallow.

    2. Back under your bridge now, Ray.
      That’s a good boy.

      1. ad hominem?

    3. It must be nice to be a troll like Ray Butlers, because you don’t even have to know what phrases like “moving goalpost” mean in order to use them.

      1. Moving the goalpost, also known as raising the bar, is an informal logically fallacious argument in which evidence presented in response to a specific claim is dismissed and some other (often greater) evidence is demanded. In other words, after an attempt has been made to score a goal, the goalposts are moved to exclude the attempt.

        …with a big fat dose of Straw Men while you’re at it.

  5. Obama is driving the Democrats off a cliff. No amount is lying is going to soften the damage of this. Obama and by extension the Democrats are going to have to run in 2010 and 2012 defending this mess and trying to explain why Obamacare hasn’t covered anyone and is raising not reducing the deficit.

  6. Couple of questions. Do you believe Obama and the Democrats knew that the law would not actually reduce deficits? If they knew it was a load of bull then what is the end goal?

    That second question is important and deserves an answer.

    1. Anyone with half a brain and even a whiff of an economics textbook knows that creating a mandate to buy something from a third-party and then subjecting the third party to heavy price controls is a way to destroy a market, not “save” it. Combined with what can only be a deliberate exacerbation of the Third-Party Payer problem, a simple economic principle that has already distorted the health care market into the state we have it know, there really is only one explanation of their actions: Single payer healthcare.

    2. The plan was to run up the deficit as much as possible as a justification for a VAT and other massive tax increases. The Obama deficit commission reports right after the November election. It will come back and say “we have to raise taxes or go bankrupt”.

      1. Good, so we have 2 options. I will take some from choice 2.

        Reorganization or Complete shutdown?

        1. IMHO choice 2 is inevitable even if we choose choice 1. Our national assets are less than our national debt — we’re already bankrupt, but like Wil E Coyote running over a cliff, we don’t realize we’re standing on air.

      2. Didn’t you read the post the other day where Obama said he’s going to figure out what the bare-bones level of services that government absolutely has to provide is, and make cuts down to that level. Then, and only then, will he consider tax increases.

        1. Just like his healthcare plan is going to “reduce the deficit” and no one making under $250K will have their taxes increased. And futher, whatever Obama’s definition of bare bones is, it will have to include Democratic supporters and chronies stealing their fair share, so chances are it produce a larger government.

          You really are funny Leffiti or Edward or whoever you are.

          1. Let’s be clear, folks: consistency is the hemoglobin of small minds.

        2. Yes, this definitely sounds like our health insurance has improved and our access to care is better, and people won’t have to die in the streets…

          I love it when I hear things like ‘bare bones,’ because inevitably, thanks to this, that’s what we’re all going to be forced into.

    3. Why should Obama and crew care about the deficit? Their supporters are people who get money from the government and nonprofit sectors, either through hand outs or through jobs. Their goal is to stay in power, and they do that by bribing poor people and government employees with money they loot from the private sector. If they worry about the deficit at all, they figure that some politicians down the road can solve the problem, a problem they won’t be blamed for because most people in the media are Democrats.

    4. “If they knew it was a load of bull then what is the end goal?”

      what Mitch said – stay in power and get more power –

      1. and it isn’t only BO and the Dems who have this goal.

    5. They definitely knew. The original bill included what is commonly called the Medicare “doc fix”, an increase in compensation rates to doctors that Congress has passed on several occasions in the past. It was removed from the version of the bill that passed to make its CBO analysis look better, but Nancy Pelosi has acknowledged that the “doc fix” will be coming in a separate bill.

      Why? Out of a mixed motivation to help people who don’t have health care (their honorable motive) and to gain more power (their not-so-honorable motive). All influenced by economic ignorance and lack of wisdom.

  7. Where in this report is there any claim that the promised reduction in federal deficits will not be accomplished?

    The report speaks to an increase in overall societal spending on healthcare – it says nothing about the effect of Obamacare on the deficit.

    In fact, the AP story ends with a reaction quote from the administration: “Administration officials argue the increase is a bargain price for guaranteeing coverage to 95 percent of Americans. They also point out that the law will decrease the federal deficit by $143 billion over the 10-year period.” – which seems to make clear that nothing in the report contradicts the deficit promise.

    Where are you guys getting this deficit angle from?

    1. The administration is (a) a less trustworthy source than the neutral body that produced this cost increase report, and (b) is referring to the jury-rigged CBO estimate, not this report, when talking about the deficit.

      The deficit angle was made clear in the CBO report — when you adjust for the accounting tricks the Dems used (paying for 6 years of benefits with 10 years of taxes, passing the “doc fix” separately, claiming cuts to Medicare spending that will never be allowed to happen, etc) they said the bill increases the deficit. By a lot.

  8. Uh, can you read? The article says precisely nothing about the deficit. All it says is that more money is going to be spent.

    Shocker!!! A law that authorizes $980 billion to be spent will increase spending! I’m scandalized.

    It’s very simple. The bill will increase the deficit if it takes in more money than it pays out. The Medicare analysis mentioned didn’t even look at the funding of the law.

    1. Shocker!!! A law that authorizes $980 billion to be spent will increase spending! I’m scandalized.

      So you never believed any of that bullshit about “bending the cost curve,” then? Glad you agree that Obama and the Democrats are such transparent liars.

      1. Wow – this is incredible. You think “bending the cost curve” meant that costs would go down?

        How dumb is that?
        It means (and has always meant) that the rate of cost increases would lessen.

        I still have yet to dig into any critique of Obamacare and not run into a core nugget of stupid. Its really quite amazing…

        1. I still have yet to dig into any critique of Obamacare and not run into a core nugget of stupid.

          You know, if it stinks everywhere you go…

  9. Based on the number of whiny Obama fools on this thread, I’d say that the report is striking a nerve.

    1. James Ard|4.23.10 @ 11:23AM|#
      “Based on the number of whiny Obama fools on this thread,…”

      My guess is that they are sufficiently ignorant to have bought into the fantasy that additional government spending would somehow reduce the deficit.

  10. That increase could get bigger, however, since the report also warned that Medicare cuts in the law may be unrealistic and unsustainable, forcing lawmakers to roll them back.

    This is slightly more certain than the probability of the sun coming up tomorrow.

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