Monday, December 21, 2009

CBO Analysis of the Senate Health Care Bill

This just in from the Congressional Budget Office:
Based on this extrapolation, CBO expects that Medicare spending under the legislation would increase at an average annual rate of roughly 6 percent during the next two decades—well below the roughly 8 percent annual growth rate of the past two decades (excluding the effect of establishing the Medicare prescription drug benefit). Adjusting for inflation, Medicare spending per beneficiary under the legislation would increase at an average annual rate of roughly 2 percent during the next two decades—well below the roughly 4 percent annual growth rate of the past two decades. It is unclear whether such a reduction in the growth rate could be achieved, and if so, whether it would be accomplished through greater efficiencies in the delivery of health care or would reduce access to care or diminish the quality of care.
Translation for the layman:  We have no idea what this bill will really cost.  However to achieve the desired budgetary targets rationing and/or lowering the quality of health care will be required.  Does this sound like a deal too good to pass up?

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