CBO Estimates Show Public Plan With Higher Savings Rate

[kpete]

Source: Congress Daily

CBO Estimates Show Public Plan With Higher Savings Rate

Friday, Sept. 25, 2009

In a bid to wrangle concessions from the Blue Dog Coalition on healthcare reform, House leaders Thursday released CBO estimates for liberals' preferred version of the public option that show $85 billion more in savings than for the version the Blue Dogs prefer.

Rep. Stephanie Herseth Sandlin, D-S.D., a Blue Dog co-chair, said any possible new momentum toward a public option tethered to Medicare rates is, in part, "because of the cost issue" and the updated CBO score.

The original House bill required the public plan to pay providers 5 percent more than Medicare reimbursement rates. But as part of a package of concessions to Blue Dogs, the House Energy and Commerce Committee accepted an amendment that requires the HHS Secretary to negotiate rates with providers. That version of the plan will save only $25 billion.

In total, a public plan based on Medicare rates would save $110 billion over 10 years. That is $20 billion more than earlier estimates, a spokesman for House Speaker Pelosi said.

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The public plan saves money because it pushes down premium prices. Lower premium prices across the country would mean the government would have to pay less in subsidies to low-income people who buy insurance through the exchange, according to CBO. Medicare rates are typically lower than those paid by private insurers, so using that formula would allow the public plan to charge considerably lower premiums to stay solvent. If the government has to negotiate the same way insurance companies do, public plan premiums likely won't be as low -- hence less savings.

Read more: http://www.nationaljournal.com/congressdaily/cda_20090925_6347.php

[Toucano]

1. I wish the blue dogs were actually interested in savings.

k&r

[annabanana]

2. Hmmmm. . . I wonder how much play this information will get

on The Evening News?

Will it even be mentioned in passing?. . Alluded to?

(Media or Mind Control?)

[PSPS]

3. It won't matter because "savings" isn't the real motivator

It's really all about shielding those hundreds of millions the insurance CEO's make, a portion of which gets funneled back in bribes to the congress & senate.

[kestrel91316]

4. Medicare For All would give us the greatest cost savings, but NOOOO,

we can't do that!!!!!

[Bolo Boffin]

5. H.R. 676 is the bill you're talking about.

It's all ready to go, but we'll see.

[senseandsensibility]

6. kick

eom

[thelordofhell]

7. And the Blue Dogs sit with their fingers in their ears and their eyes closed

"LA...LA...LA...LAAAAAAAAAAAA!"

[Frank Booth]

8. Bastard bluedogs don't care.

They want money.

[tomm2thumbs]

9. lets see if they put their money (savings) where their mouths are -doubt it- it's about campaign $$$

[Hawkeye-X]

10. When they finish scoring HR 676, it'll be shown that it'll offer FAR more savings

in the long term and actually reduces the Fed debit over time.

Then the progressives will have more weapons against the Blue Dawgs and the Thugs.

[Lorien]

11. Yep, but they would rather run the entire economy into the ground and

allow millions of Americans to die than take anything away from an insurance Co. CEO making over 100 mil. :grr:

[Lorien]

12. Every last Blue Dog must have a viable progressive challenger when

they come up for re-election. This crap cannot stand!