Health-Care Bill to Cost $940 Billion, Reduce Deficit (Update1)
By Laura Litvan and James Rowley
March 18 (Bloomberg) -- Legislation to overhaul the U.S. health-care system will cost $940 billion over 10 years and cut the federal deficit, budget experts said, meeting targets set by Democratic Party leaders seeking to win votes for the bill.
Those estimates from the Congressional Budget Office allow House leaders to move toward a vote as early as March 21, House Speaker Nancy Pelosi said today. She said the legislation, which will extend coverage to 32 million uninsured Americans, will be posted on the Internet at about noon Washington time.
With new taxes, industry fees and savings in the Medicare program for the elderly, Democratic leaders said the legislation will end up saving money and may allay concern among wavering lawmakers about the bill’s cost. It will cut the federal budget deficit by $138 billion in the first decade and reduce the shortfall further in the next 10 years, according to a report by the nonpartisan budget office.
“A lot of members will be much more comfortable with this bill based on that savings,” House Majority Leader Steny Hoyer said in a Bloomberg Television interview.
Republicans are universally opposed to the plan, the top domestic priority of President Barack Obama. They have argued that the Democratic plan uses budgeting “gimmicks” because much of the expansion of insurance coverage comes later in the life of the bill and say it costs too much.
“They can tweak this thing and tweak it,” House Republican Leader John Boehner of Ohio told reporters today. “Still, it’s a trillion dollars they are going to spend.”
Effects on Medicare
The legislation will ensure that 95 percent of Americans have health insurance, Democrats said. It will also extend the solvency of the Medicare program for the elderly by at least nine years and help Medicare patients afford prescription drugs by closing a gap, or so-called donut hole, in coverage, they said.
Obama today called the bill the “most significant step” for deficit reduction in years.
Democratic leaders had been waiting on the CBO cost estimates before moving forward and unveiling legislative language. They want to put the language on the Internet and give Americans 72 hours to read it before voting on the bill.
Pelosi, a California Democrat, said leaders will begin rounding up the final votes they need once it’s posted.
Republicans vowed to block the bill.
“It’s not too late,” said Senate Republican Leader Mitch McConnell of Kentucky. “All we need is enough Democrats in the House of Representatives to do the right thing.”
Winning Votes
Democrats are seeking the biggest health-care changes in four decades. Americans would be required to get insurance, with subsidies and purchasing exchanges to help. Insurers such as Philadelphia-based Cigna Corp. would get millions of new policyholders and be required to accept all customers.
Democrats are reporting gains in winning House votes. Yesterday, Ohio Democrat Dennis Kucinich agreed to switch his vote and back the legislation.
“I have to make a decision, not on the bill as I would like to see it, but as it is,” Kucinich said.
Kucinich’s support is influencing others, Representative Rob Andrews of New Jersey said yesterday after meeting with fellow Democrats. He cited “a sea change where people are trying to find a way to vote yes and explain their vote.”
Obama Lobbying
Obama also has been working on Washington Representative Brian Baird, meeting with him for 30 minutes in the Oval Office on March 16. Baird said he would like the legislation to do more, yet said Republican “hypocrisy” and “extremism” during the debate would figure into whether he switches his previous “no” vote.
The House plans to approve a 10-year, $875 billion bill passed by the Senate and clear a set of changes to that measure through the budget-reconciliation process. The changes are needed because House Democrats object to parts of the Senate bill. The Senate would then pass the reconciliation bill.
The House bill passed 220-215 in November. Since then, Democrats lost four “yes” votes because of vacancies and a switch by the only Republican who supported the bill. Another group of Democrats led by Michigan Representative Bart Stupak also threatened to defect over restrictions on abortion funding that they say aren’t strong enough.
Washington Democrat Jim McDermott sounded a note of caution today after Democrats provided the CBO numbers. He said he’s concerned that the savings may have come in part from providing less generous subsidies for low-income people to buy insurance.
Unaffordable Insurance
“If you’re not careful, people won’t be able to buy insurance,” said McDermott, a member of the Ways and Means Committee. Like other lawmakers, McDermott said he was still waiting to see the legislative text before deciding his vote.
Washington Democrat Adam Smith said he’s impressed by the savings in the second decade because “everything will be in place by then.” Still, he said he’s undecided and plans to make one more call to Ezekiel Emanuel, a health-care expert and brother of White House Chief of Staff Rahm Emanuel.
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