Congress

Smoke and mirrors abound. Reid says we’re “saving” money, that Medicare is “saved” and that taxes aren’t being raised, but the truth argues against Reid’s obfuscations.

Some points according to the CBO and the Senate Republican Policy Committee:

• Spending: The cost of the bill is $2.5 trillion over 10 years of full implementation (2014-2023).
• Taxes Increases: Taxes will go up $493.6 billion — nearly half a trillion dollars.
• Medicare Cuts: Medicare will be cut $464.6 billion — another half a trillion dollars.
• Government Plan: The bill includes a government run plan and provides states with the possibility of opting out of participating in that plan. According to CBO, the government run plan “would typically have premiums that were somewhat higher than the average premiums for the private plans in the exchanges.”
• Employer Mandate: The bill will impose $28 billion in new taxes on employers that do not provide government approved health plans.

Additional CBO Background:

• The bill would bend the federal cost-curve up.
• 24 million people would be left without insurance.
• States will have to spend an additional $25 billion in Medicaid expenditures
• Taxes on uninsured individuals will total $8 billion.
• Taxes on employers from the “free-rider” penalty would total $28 billion.
• 5 million Americans would lose their employer coverage.
• Only 19 million people will get a subsidy to help them buy health insurance. None of the 162 million people with employer-based care will even be eligible for a subsidy.
• The costs of the subsidies in the exchange would grow at 8 percent a year.
• The tax on high value plans will quickly be applied to almost all plans. CBO expects the revenues from the Cadillac plan tax to grow at 10-15 percent per year outside the budget window.

(H/T John Goodman)