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How would a public option affect the current CBO scoring in terms of deficits and spending?

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LLStarks Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-23-10 11:33 AM
Original message
How would a public option affect the current CBO scoring in terms of deficits and spending?
Infographics or simple answers are welcome.
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Ozymanithrax Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-23-10 11:40 AM
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1. A public option is paid for out of taxes. If there is no new revenue to pay for it...
It would increase the deficit by the cost of the program.

Medicare covers about 48 million American and costs about 480 billion. So, a public option that works like Medicare, with similar efficiencies would probably cost another 480 billion. Unless taxes are raised by 480 billion, or spending is reduced somewhere else by that amount, then they would score it as raising the deficit 480 billion a year.

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berni_mccoy Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-23-10 11:42 AM
Response to Reply #1
2. That's not accurate. The PO would be run as a government run Insurance plan
people would pay premiums (excepting subsidies, which the current bill already has in it).

The House PO was scored by the CBO. It was slightly more expensive than the current bill, but still reduced the deficit in 10 years and moving forward.
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Ozymanithrax Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-23-10 11:51 AM
Response to Reply #2
4. Thank you. I appreciate the facts. The revenue for the PO is in a "premium payment." rather than
an entitlement paid for by tax revenue.
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berni_mccoy Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-23-10 11:42 AM
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3. The House PO was scored by the CBO. It was slightly more expensive than the current bill
And it reduced the deficit a little less, but it still did reduce the deficit.
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