Health care presser lies, Pt. 2: Reform won’t add to the deficit
During the press conference on health care reform, President Obama again claimed that his reforms won’t add to the federal deficit. The proposals before Congress aren’t deficit neutral, and Obama’s numbers are based on accounting gimmicks and pushing off costs 10 years down the road.
From the Associated Press:
OBAMA: “I have also pledged that health insurance reform will not add to our deficit over the next decade, and I mean it.”
THE FACTS: The president has said repeatedly that he wants “deficit-neutral” health care legislation, meaning that every dollar increase in cost is met with a dollar of new revenue or a dollar of savings. But some things are more neutral than others. White House Budget Director Peter Orszag told reporters this week that the promise does not apply to proposed spending of about $245 billion over the next decade to increase fees for doctors serving Medicare patients. Democrats and the Obama administration argue that the extra payment, designed to prevent a scheduled cut of about 21 percent in doctor fees, already was part of the administration’s policy, with or without a health care overhaul.
Beyond that, budget experts have warned about various accounting gimmicks that can mask true burdens on the deficit. The bipartisan Committee for a Responsible Federal Budget lists a variety of them, including back-loading the heaviest costs at the end of the 10-year period and beyond.
Sources:
The Associated Press, July 22, 2009
FACT CHECK: Obama’s health care claims adrift?
The Washington Post, July 22, 2009
