Dubious AP article on health care "costs"

[Eric J in MN]

Budget umpire: Health care bills would raise costs

By RICARDO ALONSO-ZALDIVAR, Associated Press Writer – 1 hr 50 mins ago

WASHINGTON – Democrats' health care bills won't meet President Barack Obama's goal of slowing the ruinous rise of medical costs, Congress' budget umpire warned on Thursday, giving weight to critics who say the legislation could break the bank.

...Explained (Congressional Budget Office Director Douglas) Elmendorf: "In the legislation that has been reported, we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount. And on the contrary, the legislation significantly expands the federal responsibility for health care costs."

Obama wants to slow the increase in premiums, which are rising faster than inflation.

Not the cost to the federal government.

Of course, starting a new federal insurance plan will cost the federal government more. That's why the House bill increases revenue by raising taxes on the rich.

But the competition from the federal insurance plan will slow the increase in private insurance premiums.

The article proceeds to discuss how great taxing health care benefits would supposedly be:

Even if the legislation doesn't add to the federal deficit over the next years, Elmendorf said costs over the long run would keep rising at an unsustainable pace.

Part of the reason is that Obama and most Democrats have refused to accept a tax on high-cost health insurance plans as part of the overhaul. There's wide agreement among economists that such a tax would give businesses and individuals an incentive to become thriftier consumers of health care.

What the article omits is more people with lousy coverage = more people going bankrupt because they got cancer. People being financially ruined by getting sick is something health care reform should DECREASE, not INCREASE, which would be the effect of taxing benefits.

[nightrain]

1. how about providing services to those who have been

postponing care for years and then work on bringing costs into line?

[Eric J in MN]

3. Unlimited money for war, but for health care, not so much. NT

NT

[runawaypappy]

2. The federal government is BANKRUPT!

They are printing money on "worthless paper." How can anyone
in their right minds think that this can continue like it is
going to give one group or another a free ride. The U.S.
Constitution (as mean as this sounds) does not give anyone the
right to free health care, or free anything except your pursuit of
happiness that only you can grab.....we have become a nation of
freeloaders and that includes the congress....