New CBO Projection: $1.4 Trillion O’Care Deficit Spending by 2025
The Congressional Budget Office yesterday released its updated Obamacare net cost analysis: $1.4 trillion over the coming eleven years, all of it borrowed and printed money.
Obamacare costs (net of tax income) are divided about equally between $1.06 trillion for health insurance purchase subsidies and $920 billion in Medicaid expansion costs. This year or next, the New Hampshire legislature must decide whether to continue our state’s participation in Medicaid expansion, thereby burdening New Hampshire taxpayers with the risk that the federal government will be forced by currency or bond markets to curtail borrowing and printing and to welch on its promise to pay 90 to 100 percent of the $2.5 billion cost for our state through 2020.
The fiscal recklessness embodied in Obamacare must be restrained by two systemic reforms:
Ratify a Balanced Budget Amendment to the US Constitution. Medicare Part D, Obamacare, Washington under either party cannot stop itself from promising more spending without paying for it. Congress has refused for decades to give a BBA to the states to ratify. So, it’s time for an Article V convention of the states to draft one for potential state ratification.
End the corrupt, crony capitalist campaign funding system. Rather than implementing reforms to reduce America’s highest-in-the-world healthcare costs and using these savings to pay for expanded access, Obamacare was fashioned by entrenched special interests in the healthcare industry.
After the fight to pass Obamacare, PBS Frontline reported that healthcare industry (insurance and pharma) refused back Obamacare unless the President backed off his campaign promise for a “public option” (government run health plan), included the individual mandate to purchase private insurance, and continued to prohibit the federal government from negotiating lower prices for pharmaceuticals. Obama caved and to make this deal to pass Obamacare, the White House delegated then-Senator Max Baucus (D-MT), who had taken over $440,000 in campaign contributions (2nd most in Congress after John McCain) from the health insurance and pharmaceutical industries during the 2006-2010 election cycles.
Howard Dean told Frontline, “There were two senior staffers in Max Baucus's office, one who used to work for United Health Care and one who used to work for WellPoint, who wrote the bill.” Forbes Magazine reports that Obamacare expected to increase pharma industry profits by $10 to $35 billion over ten years ending 2025.
If voters want a fiscally responsible Congress accountable to the people, we must demand an alternative to bought and paid for public policy. When they come to our state asking for your vote, ask the Presidential candidates what they will do to end this system corruption that gave us Obamacare and $1.4 trillion in new debt.