A new report out of the CBO (Congressional Budget Office) throws some cold water reality on President Obama’s claim that the $2 trillion in healthcare costs he claims his“coalition partners” (PhRMA, AdvaMed, America's Health Insurance Plans, American Hospital Association, American Medical Association and Service Employees International Union) said they could trim will make much of a difference in long-term healthcare cost savings.
"What was originally offered up as a down payment on healthcare reform simply can't be accurately estimated by the CBO and will result in far less savings than the originally promised $2 trillion," said Republican senator Mike Enzi of Wyoming, the ranking member of the Senate health committee. "The administration will need to come up with far greater savings proposals – savings that Congress can take to the bank – to achieve the massive healthcare bill Democrats are proposing."
(In May, President Obama announced that six groups– had pledged to reduce healthcare spending growth by 1.5 percentage points annually over 10 years, saving an estimated $2 trillion. Within days of the announcement, reports surfaced that the groups had planned to ramp up to the 1.5 percentage point level over time, rather than committing to such savings annually.)
According to the CBO, extending prescription drug coverage to the entire population "would probably increase the deficit significantly", the CBO said. It also cited its December 2008 estimate that establishing a biosilimar approval pathway would yield federal savings of about $10 billion over the next decade. The December report estimated that an FOB measure with 12 years of innovator exclusivity would generate federal healthcare savings of $9.1-11.7 billion, with the larger figure contingent upon placement of FOBs in the same billing code as their branded counterparts for payments under the Medicare Part B program.
According to a story in SCRIP World Pharmaceutical News, “The budget office's brief analysis was released as healthcare reform activity in Washington reached a fevered pitch, much of it focused on the costs of a massive overhaul. Among the activity of note, the CBO released higher-than-expected cost estimates for reform legislation being considered by the Senate health committee, and the Obama Administration said it was working with Congress to extract $22 billion in savings over 10 years from the Part D drug programme, including lowering reimbursement of medicines for "dually eligible" individuals who qualify for both Medicare and Medicaid.”
Relative to the Affordable Health Choices Act, the CBO estimated the measure would cost the federal government $1 trillion over 10 years and result in a net decrease in the number of uninsured people by only 16 million.
Yeah – reality bites.
"What was originally offered up as a down payment on healthcare reform simply can't be accurately estimated by the CBO and will result in far less savings than the originally promised $2 trillion," said Republican senator Mike Enzi of Wyoming, the ranking member of the Senate health committee. "The administration will need to come up with far greater savings proposals – savings that Congress can take to the bank – to achieve the massive healthcare bill Democrats are proposing."
(In May, President Obama announced that six groups– had pledged to reduce healthcare spending growth by 1.5 percentage points annually over 10 years, saving an estimated $2 trillion. Within days of the announcement, reports surfaced that the groups had planned to ramp up to the 1.5 percentage point level over time, rather than committing to such savings annually.)
According to the CBO, extending prescription drug coverage to the entire population "would probably increase the deficit significantly", the CBO said. It also cited its December 2008 estimate that establishing a biosilimar approval pathway would yield federal savings of about $10 billion over the next decade. The December report estimated that an FOB measure with 12 years of innovator exclusivity would generate federal healthcare savings of $9.1-11.7 billion, with the larger figure contingent upon placement of FOBs in the same billing code as their branded counterparts for payments under the Medicare Part B program.
According to a story in SCRIP World Pharmaceutical News, “The budget office's brief analysis was released as healthcare reform activity in Washington reached a fevered pitch, much of it focused on the costs of a massive overhaul. Among the activity of note, the CBO released higher-than-expected cost estimates for reform legislation being considered by the Senate health committee, and the Obama Administration said it was working with Congress to extract $22 billion in savings over 10 years from the Part D drug programme, including lowering reimbursement of medicines for "dually eligible" individuals who qualify for both Medicare and Medicaid.”
Relative to the Affordable Health Choices Act, the CBO estimated the measure would cost the federal government $1 trillion over 10 years and result in a net decrease in the number of uninsured people by only 16 million.
Yeah – reality bites.
