The letter behind the bill.

[cornermouse]

Read it and think about it.

http://www.cms.hhs.gov/ActuarialStudies/Downloads/S_PPACA_2009-12-10.pdf

Pay particular attention to pages 8 and 9. Starting on the last paragraph they state savings estimates may be unrealistic due to the fact that hospitals are unlikely to be able to improve productivity enough. Over time, a sustained reduction in payment updates, based on productivity expectations that are difficult to attain, would cause Medicare payments to grow more slowly than, and in a way that was unrelated to, providers' costs of furnishing services to beneficiaries. Thus providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and, absent legislative intervention, might end their participation in the program (possibly jeopardizing access to care for beneficiaries). Simulations by the Office of the Actuary suggest that roughly 20 percent of Part A providers would become unprofitable within the 10-year projection period as a result of the productivity adjustments.

Page 11 they talk about the moderation in health care costs due to excise taxes on high cost employer-insurance resulting in employers reducing health benefits offered which would induce workers to use fewer services.

There's more. I suggest you read it for yourself and see what you think.

[levander]

1. Surprised some people think Reid Bill is fiscally responsible...

I've read much of that CMS report. And, the report is worded fragily. But, my interpretation of it is, "there's no way you can implement these cuts to Medicare". They'll try, and Medicare will be damaged because of the effort, but there's no way they can really cut all they want to out of it.

I basically think saying they'll cut Medicare by $500 billion is just political spin. They know they can't, but they need political cover for all their spending, so they say, "we'll make magical cuts to Medicare that will make Medicare better!!".

Then you consider that the 1st decade is paid for by collecting 10 years of revenue on it, but only providing 6 years of service. The 2nd decade is paid for because medical costs go up so much, your paying that much more in the new tax on health insurance, and so many more people are paying penalties because they don't have insurance, that's how the 2nd decade is paid for.

Obama has made it clear that his next effort is to reduce spending to address our deficits, which are on the road to becoming out-of-control. Him saying he's going to cut Medicare spending to pay for this bill is just political bullshit to give him something to say when he's talking about how bad we need to cut our deficits.