Snap Fact #257
The Objective Economic Skinny on the Financial Aspects of ObamaCare - it's a no-brainer!
To fully understand the accuracy and importance of the source of the information in today’s SNAP-CAP we need to know about the CBO and its work. Here is a thumbnail sketch. The full description of the CBO can be accessed by clicking the first link below.
The objective, impartial, and non-partisan Congressional Budget Office (CBO) is THE ultimate authority in determining the fiscal ramifications of proposed bills and amendments proposed within the chambers of Congress. They are required to do a cost analysis on every bill out of committee.
The CBO not only is totally apolitical and they employ the same methods and standards no matter what party has sponsored a bill under their scrutiny. Once done, they are mandated to disclose their methodology for arriving at their published conclusion. They also are available to discuss and explain their results with any member of Congress. This transparency, along with other safeguards, such as extensive review of their work, assures the veracity of the CBO.
The 35 year record of objectivity and work product of the CBO has earned the overwhelming confidence of both parties. They are strictly concerned with the fiscal aspects of a bill and they never get involved in political or policy aspects.
CBO’s baselinebudget projections are intended to show the future paths of federal spending and revenues under current law and policies. The baseline is meant to serve as a neutral benchmark that lawmakers can use to measure the effects of proposed changes to spending and taxes. All of their cost estimates and reports are posted on their website. There is rarely a murmur about their results as they are regarded as the ultimate authority.
Knowing the gravitas of the CBO we can now turn to 3 of their critical factual findings regarding the financial impact of ObamaCare. Their first conclusion is the result of their evaluation of the July 11, 2012 H.R. 6079, the Repeal of ObamaCare Act passed by the House of Representatives. The CBO says, “Repealing the health care law passed in 2010 and upheld by the Supreme Court in June would increase the federal deficit by $109 billion over 10 years, a new Congressional Budget Office analysis estimates”.
The House repeal bill, which passed unanimously among Republicans and received support from a handful of Democrats, will not pass in the Senate and the President will not sign it into law in the unlikely event it did. The scary thing is that if we get a Republican president and congress in the coming election, this sort of self destructive legislation is going to become the law of the land.
Yahoo News reports that, “in a separate analysis, the CBO also measured the impact of the June Supreme Court ruling that struck down parts of the health care law but left core provisions intact, and found that it would save $84 billion because of reduced Medicaid spending.
The CBO estimated in 2011 that the health care law would reduce the federal deficit by $210 billion over 10 years because of the law's revenue increases.
Rather than providing a link, I am including the actual notification from the CBO to the House Majority Leader. It supplements the above SNAP-CAP and it speaks for itself:
Letter to the Honorable John Boehner providing an estimate for H.R. 6079.
July 24, 2012
CBO and the staff of the Joint Committee on Taxation (JCT) have estimated the direct spending and revenue effects of H.R. 6079, the Repeal of Obamacare Act, as passed by the House of Representatives on July 11, 2012. H.R. 6079 would repeal the Affordable Care Act (ACA), with the exception of one subsection that has no budgetary effect. This estimate reflects the spending and revenue projections in CBO’s March 2012 baseline as adjusted to take into account the effects of the recent Supreme Court decision regarding the ACA.