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Healthcare Reform Updates

           CBO Criticizes Democrat
               Health Care Reform 


Washington D.C. --- CBO Director Douglas Elmendorf  says that healthcare reform measures being drafted by Democrats will worsen the already weak budget deficit and drive the nation deeper into debt.

Elmendorf believes the legislation expands the federal government's role in healthcare even though congressional leaders  indicate otherwise.  When  asked by the chairman of the Senate Budget Committee, Kent Conrad (D-N.D.) whether Elmendorf saw a successful effort to blend the long-term cost curve, he responded,  "No Mr. Chairman". 

CBO is the official arbiter of the costs of legislation and the testimony by Elmendorf's caused other Democrats to waiver in their  support before House panels begin debate on the floor prior to the August recess.

Elmendorf also suggested changing how Medicare reimburses providers to create incentives for reducing costs. A program, such as Comparative Effectiveness, could begin and require doctors to practice more cost effective healthcare, which may include early hospital discharge to home care providers.


Democratic Blue Dogs, have already sent letter to the leadership threatening to block passage of legislation in the Energy and Commerce Committee. While cost is a major issue in the Senate, there has not been a comprehensive plan published. Currently, the tax on employer funded benefits has fallen out of favor with the White House and according to Baucus, the President is not helping. "We are clearly going to find ways to bend the cost curve in the right direction, including provisions that will actually lower the rate of increase in health care costs." added Baucus.

The White House is still considering the idea of an independent agency to set Medicare reimbursement rates along with health care delivery system reform as well as health insurance market reform. 
Baucus said he is not giving up on the benefits tax. "It is not off the table, there's still a lot of interest."




     HEALTH BILL SURTAX     AVOIDED AT THE EXPENSE 
OF MEDICARE & MEDICAID

                                                                

Plans to tax the wealthy to finance a health care reform has Democrats concerned while they consider re-writing of the Heath Care Reform Act to seek more savings from payment changes in Medicare and Medicaid. The surtax on wealthy earners could be adjusted only if expected savings do not yield the necessary results, said Democrats.

 

According to Congressman James E. Clyburn, D-SC, “I don’t think we have to have the surcharge at all. There are a lot of Democrats on my side of the aisle believe that”.“Because we think there is a chance that some funding may need to come far down the road, we could have this trigger in here” for a surcharge on the wealthy, “a trigger which we don’t think ever will need to be pulled. And that’s what we’ve been working on.”

 

The minority side responded, with only two weeks to go before their self-imposed dead line to pass a bill, almost     20 percent of the American economy will be altered. They suggested that House Democratic leaders should get on the same page.

 

Democratic leaders stated the Congressional Budget Office is not giving official credit to the savings of the bill which would occur as a result of provisions designed to promote wellness and avoid expensive medical treatments.

 

According to Congressman James Clyburn, CBO is not scoring a big part of the bill on the savings side and he believes that the savings are in the system. “We don’t need to have any kind of new monies coming into the system if we were to score these savings,” added Clyburn.

 

Clyburn said House Democrats are prepared to push forward with a bill before the August recess no matter what CBO says in its formal scoring. “If we don’t get the scoring from CBO, we can still go ahead and do the plan as we envision the savings to be,” added Clyburn.

 

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