CBO score is posted - H.R. 4872, Reconciliation Act of 2010

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The following has been added to CBO's Web site (www.cbo.gov):

H.R. 4872, Reconciliation Act of 2010
Estimate of direct spending and revenue effects for the amendment in the nature of a substitute released on March 18, 2010

25 pages
http://www.cbo.gov/ftpdocs/113xx/doc11355/hr4872.pdf

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1. Page one ...

"Dear Madam Speaker:

The Congressional Budget Office (CBO) and the staff of the Joint Committee on
Taxation (JCT) have completed a preliminary estimate of the direct spending and revenue
effects of an amendment in the nature of a substitute to H.R. 4872, the Reconciliation Act
of 2010; that amendment (hereafter called “the reconciliation proposal”) was made public
on March 18, 2010. The estimate is presented in three ways:

 An estimate of the budgetary effects of the reconciliation proposal, in combination
with the effects of H.R. 3590, the Patient Protection and Affordable Care Act
(PPACA), as passed by the Senate;1

 An estimate of the incremental effects of the reconciliation proposal, over and
above the effects of enacting H.R. 3590 by itself;

 An estimate of the budgetary impact of the reconciliation proposal under the
assumption that H.R. 3590 is not enacted (that is, an estimate of the bill’s impact
relative to current law as of today).

Although CBO completed a preliminary review of legislative language prior to its
release, the agency has not thoroughly examined the reconciliation proposal to verify its
consistency with the previous draft. This estimate is therefore preliminary, pending a
review of the language of the reconciliation proposal, as well as further review and
refinement of the budgetary projections.

The reconciliation proposal includes provisions related to health care and revenues, many
of which would amend H.R. 3590. It also includes amendments to the Higher Education
Act of 1965, which authorizes most federal programs involving postsecondary education...."

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2. First 10 year deficit reduction lists 70 billion for new long term care plan

on page 18


Old post

http://journals.democraticunderground.com/slipslidingaway/199

Both bills reduce the deficit because they collect money for a new long term care plan that will not have any cash outlays in the beginning years.

"The legislation includes a number of other provisions with a significant budgetary effect.

They include the following:

 Community Living Assistance Services and Supports (CLASS) provisions, which
would establish a voluntary federal program for long-term care insurance. Active
workers could purchase coverage, usually through their employer. Premiums
would be set to cover the full cost of the program as measured on an actuarial
basis. However, the program’s cash flows would show net receipts for a number of
years, followed by net outlays in subsequent decades. In particular, the program
would pay out far less in benefits than it would receive in premiums over the
10-year budget window, reducing deficits by about $72 billion over that period,
including about $2 billion in savings to Medicaid..."