CBO: Baucus Bill Analysis

The Congressional Budget Office released it's preliminary numbers for Senator Max Baucus's health care proposal yesterday. The CBO does not normally project beyond 10 years. Unless otherwise stated the number below are for FY 2010 to FY 2019.  pdf

  • $829,000,000,000.00 in additional spending.
  • 25,000,000 non-elderly residents to remain uninsured.
  • $201,000,000,000.00 in higher excise taxes on existing health care plans.
  • Medicare will face cuts of $404,000,000,000.00.  $133,000,000,000.00 will be from the “Medicare Advantage Program.”
  • Medicare and Medicaid payments to hospitals would be reduced by $45,000,000,000.00.
  • Costs grow at over 8% per year after 2019.
  • Excise taxes will grow between 10% and 15% per year after 2019.
  • “Other Taxes” will reach $52,000,000,000.00 per year by 2019 and increase at 10% per year after 2019.
  • Reimbursement rates to physicians from Medicare would be reduced by 25% in FY2011 alone. These rates will never be restored.

About Mike "DD4RP" Rossettie

  • Aren’t the taxes or the millions left uninsured, although both should be fatal blows in and of themselves.

    What’s really going to kill this are the Medicare payment cuts.

    Medicare already sets and pays artificially low amounts for medical care that is stressing the system NOW, and making the privately insured subsidize Medicare.

    Reducing Medicare payments to doctors and hospitals will mean one thing.  Fewer doctors and fewer hospitals while serving more patients.

    An untenable proposition.

  • “CBO and JCT’s analysis is preliminary in large part because the Chairman’s mark, as amended, has not yet been embodied in legislative language.”

    In other words, there is no Baucus bill.

  • Vote3rdpartynow

    the costs beyond 10 years out skyrocket.

    I think Baucus wanted to present a plan that had ‘more’ sustainable costs.  So he brought the cost down to $829B, but with the program not really rolling out for years.  There is no way this program, or any federally run health care program, can be deficit neutral.  It just can’t happen.