CBO Makes It Official: Repealing ObamaCare's Long Term Care Benefit Won't Increase the Deficit


Earlier this week, the Congressional Budget Office officially confirmed that repealing the CLASS Act, ObamaCare's shuttered long-term care benefit, would not increase the deficit. As CLASS began to collapse, there was initially some concern about this. The program was scored to reduce the next decade's deficit thanks to the collection of early premium revenues. So shouldn't repealing it increase the official deficit projections? 

CLASS dismissed.

That would have been the case over the summer, before the administration announced that it would not be implementing CLASS, but not anymore. As CBO explained in its letter to Sen. Thune, it changes its budgeting projections based on new information from program administrators: 

If the new information indicates that something definitely has happened or definitely will happen (such as an agency issuing a final rule, or an official announcement clearly defining an intended Administration action—such as the HHS Secretary's announcement on October 14), CBO incorporates that information in its next regular baseline update. It also immediately takes that information into account when analyzing legislation being considered by the Congress—even if it has not published new baseline projections.

Despite the fact that the program, as designed, was widely understood to be a complete train wreck that would eventually add billions to the deficit, even some Republican legislators were wary of voting to repeal a bill that officially reduced the deficit. But that shouldn't be a problem anymore. Because the administration has said it won't be implementing the program, CBO no longer expects to collect any revenue as a result of its operation. Consequently, repealing it wouldn't have any official effect on the deficit at all. 

This is good news, although it still may not lead to repeal since the administration, despite admitting that it is unable to implement CLASS in a fiscally responsible way, continues to oppose actually erasing the program from the books. 

It's also a lesson in the power of the Congressional Budget Office in Washington legislating. Even after virtually everyone admitted that the program was totally unworkable and destined to add to the deficit in the decades after its implementation, Republicans who opposed the program were nonetheless resistant to killing it—not because of its important long-term effects but because of how the CBO scored its deficit effects in the next ten-year window.  

Lots more on the power of the CBO in my 2010 magazine feature, "The Gatekeeper."  

NEXT: Fair Lending Isn't Fair

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  1. Doubtless you have been reading/hearing lots of news from US Media about Europe, Greece & Euro. And as usual most of it are either lies, or twisted by the right-wing Media in US to suit their agendas. So given that I find RealNewsPost.com as one of the news sources that always posts the real news and real facts, I thought best to report here to you all about the real facts about Europe, Greece & Euro.

    Euro debt crisis is mainly US right-wing Media LIES

    “Europe Debt crisis” are mainly right-wing Media LIES and non-sense.


    1- If there was an ounce of real truth about “Euro debt crisis” THEN US Dollar would have gained against Euro, but instead it is Euro that is MUCH MORE VALUABLE than US Dollar. Given the FACT that Euro since its introduction in year 2000 at 1 to 1 to US Dollar has GAINED a MIGHTY, repeat for Republican lunatics, has GAINED a MIGHTY % against US Dollar.

    2- Debt is KEY part of Capitalisim and in fact very good IF it is put into good use. So the Debt that Europeans have is MAINLY very good Debt since it is put into good use, it is used to invest in Eurropean people and cities from providing them with FREE health care for Taxes they pay, to providing them with FREE COllege education for Taxes they pay to giving them modern Transporation systems such as High speed Trains in Germany, France as a result of which public transporation they depend much less on polluting Middle Eastern Oil since these are electric powered. However most of US Debt is bad debt since it is wasted on unnecessary Wars and a Gargantuan Military. Which FACTS you can instantly see proven by Euro being MUCH MORE valuable than US Dollar which means the World is telling you with their money that they much rather keep their money in Europe because European economies are going to do much better than US because Europeans are investing their Debt & Taxes much more in their people.

    So How much longer does Euro have to be MUCH MORE VALUABLE than US Dollar for Americans to realize that “Euro debt crisis” is non-sense and that US is suffering from Republican lunatics, HOAX Democrats and above all a right-wing lyingn Media/Cabal and that is why Europeans have fundamental advantages over US, such as:

    1- All Europeans have health care, because they operate health care on socialized basis just as US operates the Military on socialized basis. So while all Euopeans have health care they spend a small fraction of what US spends on health care where for example 73% of working people in Texas have NO health care.

    2- European Governments do not waste the people’s money on Unnecessary Wars (Vietnam war, Iraq War, etc.) or on a Gargantuan Military.

    3- Europeans have many more Socialized services, which means get much more Value for our Taxes, compared to Americans, such as:
    we can go to University practically for FREE, compare this to US where a basic BS degree can cost you an INSANE $100,000+ and more saddling you with debt for years to come even if you get a good Job.

    With the above said, some Euro weakening is in fact very good for European economies, specially weaker ones like Greece, since Euro is way over priced compared to US Dollar and other currencies. For example why would you want to go to Greece when you can goto Turkey which has just as nice a beaches as Greece but currency that is 30% less than Greece’s currency.

    With that said, here is what you can Bank ON:

    US Dollar will NEVER EVER, repeat for Republican lunatics and lying right-wing Media in US, NEVER EVER, be as valuable as Euro since Europeans are not suffering from Republican lunatics, HOAX Democrats (ie Obama) and above all a right-wing (LYING) Media. As a result Europeans have the fundamental advantages that they have over US, which again simply means Europeans get much more value for their Taxes, which means Europeans operate a sensibly more portion of their economy on Socialized basis and not just the Military, Police, etc. on Socialized basis as is the case in US. Such as for example ALL Europeans like all other developed nations have Universal Nationalized health care (NHS) as a result of which while ALL Europeans have health care, they are spending 50% LESS on health care than in US which does not have something as necessary for operation of a modern society as health care for all by operating health care on socialized basis!

    If you want the American dream? Move to Denmark

    So you want a fact based Video proof of how screwed up USA is compared to most of the European countries, or countries that have much less of income gap between the Rich & Middle class? You want to see how Northern European countries, Japan, etc. that have much more of Socialized services and much more of an active Government in income distribution and creating a more fair and balance society have much better economies and societies across almost all measures, from people’s life expectancy, to child mortality, to college education, to percentage of people in jail, to MUCH LOWER Unemployment, to much less Debt, etc. etc. then check out this Video:


    1. “We Don’t Want Full Employment, We Want Full Lives!”

    2. “If you want the American dream? Move to Denmark”

      Denmark’s purchasing power adjusted GDP/capita is about the same as Mississippi, our poorest state.

      You move first.

      1. But the distribution of income is MUCH MORE EQUITABLE, anyone with even HALF a brain would choose Denmark over a poverty-riddled craphole like Mississippi! FREE University, FREE Healthcare, FREE Childcare, FREE PAID maternity leave, etc, in Denmark, its a no-brainer! And SIX to EIGHT weeks PAID vacation, vs. two UNPAID if you’re lucky in Mississippi!

        1. I’ve lived in both Billund, DK and Gulfport, MS. Both places have their own charm but never forget, the selection & affordability of foodstuffs readily available in the markets of The Magnolia State puts the Danes to shame. Also better in MS, the restaurants, recreational opportunities, and every other consumer good; even Lego is less expensive in Mississippi than it is in Billund, the very city in which it’s manufactured. In my experience, people who gush over Europe have only vacationed there and never actually had to procure employment, rent a house, or provision a larder.

        2. But the distribution of income is MUCH MORE EQUITABLE, anyone with even HALF a brain would choose Denmark over a poverty-riddled craphole like Mississippi!

          A low-scale, culturally and ethnically homogenous society is more equitable than a complex, culturally and ethnically diverse one? Well my stars!

          1. Oh, no, cultural differences could never account for anything.

            Also, one of the dirty little secrets about Europe’s welfare states is they they do not deliver services to cultural and economic minorities nearly as well as advertised.

            The advantage for those countries is that the Americans who vaction there never go to see any of the parts of town where those people live.

            For many of the outsiders living in the underground economy because doors are simply closed to “their kind” all that FREE stuff is out of reach.

          2. The Danish constitution also prescribes an official state religion; that is a deal-breaker for this radical atheist. Also, the Forsvaret only stood up to the NAZIs for about 2 hours before handing over the keys to the kingdom, the Poles fought valiantly for almost a month and they were still using lance-bearing horse cavalry.

    3. -3
      Needs more brackets and you failed to blame teh jooz.

    4. You begin with the retarded assumption that the Euro and the $ are the only currencies in the world and devolve from there.

      1. It also devotes point #1 to crowing about how the great and powerful euro is great and powerful because it is far more valuable than the lowly USD but then ends point #3 with this gem – “…Euro weakening is in fact very good for European economies…since Euro is way over priced compared to US Dollar and other currencies.
        Fucking cognitive dissonance, how does it work?

        1. Not to mentin that if Greece defaults, it will likely set off a chain reaction that will render the EU as yet another failed European attempt at social engineering.

    5. Anything that disagrees with my preconceived notions is a lie!!!!! Greece is in wonderful shape, and anyone who says differently is discredited by the above principle!

  2. So the federal government’s budget process is unmoored from reality and is fundamentally batshit insane. Have I got that right ?

  3. The agricultural city-State’s process is unmoored from reality and is fundamentally batshit insane.

    Premise Fourteen: From birth on?and probably from conception, but I’m not sure how I’d make the case?we are individually and collectively enculturated to hate life, hate the natural world, hate the wild, hate wild animals, hate women, hate children, hate our bodies, hate and fear our emotions, hate ourselves. If we did not hate the world, we could not allow it to be destroyed before our eyes. If we did not hate ourselves, we could not allow our homes?and our bodies?to be poisoned.

    Derrick Jensen

    1. That guy sounds batshit insane.

  4. 2- European Governments do not waste the people’s money on Unnecessary Wars (Vietnam war, Iraq War, etc.) or on a Gargantuan Military.

    Before a newcomer posts here he should read what the site and its readers generally believe. If you had you would know that people at this site generally believe that the US should have a smaller military and a less interventionist international presence.

    Of course picking up the tab for the defense of Europe and doing all of Europe’s dirty work costs money. I fully agree it’s time the freeloaders paid their share.

    1. 2- European Governments do not waste the people’s money on Unnecessary Wars (Vietnam war, Iraq War, etc.) or on a Gargantuan Military.

      I guess the Balkans, Chad, Zaire, Djibouti, C?te d’Ivoire, Libya, Congo, Falkland Islands, Indonesia, Timor, Eritrea, Ethiopia, and all the other garden spots to which the Europeans send their children to wage war don’t count.

  5. The health care law gets ruled constitutional

    Obama drops out of the prez race and Hilary runs instead, beats Romney.

    The world continues down the road to financial ruin. China’s economy busts, Europe dissolves, and the US leads the way into world wide depression.

    We are so doomed

  6. It’s also worth noting that when you have a population of 5.5M people (smaller than the eight most populous US states) who are for all practical purposes the same, ethnically and religiously, it’s not that hard to set up a welfare state that works relatively well and is seen as fair by all participating.

    The Danish welfare state is already showing cracks though as native Danes are starting to show resentment towards those darker hued newcomers who don’t seem to understand the cultural norms.

    Single-payer healthcare would be delicious to watch in this country as the David Dukeites and the Al Sharptonites slug it out over which favored group is getting the most benefits and who’s victim group is getting listed for elimination by the death panels the most often.

  7. I think he will be able to win the nomination.

  8. “Earlier this week, the Congressional Budget Office officially confirmed that repealing the CLASS Act, ObamaCare’s shuttered long-term care benefit, would not increase the deficit.”

    Given that we now know that even with CLASS Obamacare would not have reduced the deficit, why are we giving any credibility to the CBO? They have demonstrated that their calculation assumptions are fatally flawedm and everyone who pays attention knows this.

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