DNC - FACT CHECK GREGG: Wrong on cost

Please see below for a fact check on Senator Gregg's erroneous comments made from the Senate floor just now that the CLASS Act would add trillions and that the bill would cost $2.5 trillion:  RHETORIC: Sen. Gregg Claimed That CLASS Act Would Add "Trillions More Of Unfunded Liability." "We know when you combine Medicare, Medicaid, and Social Security, we have a $55 trillion unfunded liability. If you calculate in the costs of the CLASS Act on top of that, you're adding potentially trillions more of unfunded liability which will all have to be paid by our children and grandchildren." [Senate Floor, 12/3/09] RHETORIC: Sen. Gregg Claimed Once Again That Senate Bill Would Cost $2.5 Trillion. "When you know the program, the entire bill fully phased in it's $2.5 trillion in costs. $2.5 trillion in costs." [Senate Floor, 12/3/09]  REALITY: CBO ESTIMATED THAT CLASS ACT WOULD CUT THE DEFICIT BY $72 BILLION

 

CBO: Class Act Would Reduce Deficits “By About $72 Billion.” The CBO found in its estimate of the Senate health reform bill that the CLASS provisions, “would pay out far less in benefits than it would receive in premiums over the 10-year budget window, reducing deficits by about $72 billion over that period, including about $2 billion in savings to Medicaid.” [CBO Estimate, 11/18/09]

  

 

REALITY: SEN. GREGG'S $2.5 TRILLION NUMBER IS COMPLETELY MADE UP

 

Claim That Senate Bill Would Cost $2.5 Trillion Was Generated By Senate Budget Committee Republicans. Fox News reported that, “Republicans have countered the CBO estimate with a figure of their own: $2.5 trillion, an estimate that comes out of the Senate Budget Committee minority's analysis of Reid's plan.” [Fox News, 11/19/09]

 

 

CBO: Class Act Would Reduce Deficits “By About $72 Billion.” The CBO found in its estimate of the Senate health reform bill that the CLASS provisions, “would pay out far less in benefits than it would receive in premiums over the 10-year budget window, reducing deficits by about $72 billion over that period, including about $2 billion in savings to Medicaid.” [CBO Estimate, 11/18/09]

 

WSJ: CBO Estimate Of Senate Bill Is $848 Billion, Cuts Deficit By $130 Billion. The Wall Street Journal reported that, “Senate Majority Leader Harry Reid set the stage for a climactic debate in the Senate over health care by unveiling a 10-year, $848 billion bill that would extend insurance to 31 million Americans without coverage…In a boost for the bill's prospects, the CBO estimated the Senate measure would reduce the federal budget deficit by $130 billion over the next decade, and additional amounts over the second 10 years of the program. It achieves that in part through a new Medicare payroll tax and a tax on high-value insurance plans, which has aroused strong opposition…To help ease the financial burden on workers, Mr. Reid lowered the maximum amount the bill would require them to spend on premiums, capping premiums at 9.8% of income, down from 12%.” [Wall Street Journal, 11/19/09]

 

 

 

REALITY: TO SEN. GREGG, IT SEEMS CBO IS ONLY NON-PARTISAN WHEN IT SUITS HIS PURPOSES TO OBSTRUCT HEALTH REFORM

 

Sen. Gregg Called CBO Director Testimony On Democratic Health Care Plan “A Severe Assessment From An Objective And Non-Partisan Agency.” In a statement, Sen. Gregg said, “‘Dr. Elmendorf today gave a sobering perspective on the implications of the majority's health care reform plan,’ said Senator Gregg. ‘He indicated that the present plans contain no significant changes to reduce federal costs relative to reimbursement and the overall health care structure; that many Americans won't see their insurance premiums go down and they may even go up; and that while the nation's debt continues to rise to unsustainable levels, there is little in these reform plans that will do anything but make it worse. ‘That is a severe assessment from an objective and non-partisan agency - I think it is a failing grade.’” [Sen. Gregg Statement, 7/16/09]

 

Sen. Gregg Relied On “Nonpartisan” CBO Numbers To Attack Democrats’ Incomplete Health Care Bill. In a press release, Sen. Gregg said, “On Monday, the nonpartisan Congressional Budget Office (CBO) released a preliminary analysis estimating that this unfinished plan will increase spending by more than $1.3 trillion from 2010 to 2019. Senator Gregg stated, ‘CBO has estimated that the health care reform proposal put forth by the Democratic members of the Senate HELP Committee, even in its imperfect form, will increase spending by more than $1.3 trillion in the first ten years.  That number is staggering, but what is more disturbing is that the estimate fails to reflect the true cost of the fully-implemented plan, which will ring in at more than $2.3 trillion over ten years.’” [Press Release, 6/17/09]

 

Sen. Gregg Had No Qualms Touting CBO Analysis To Claim That Medical Liability Reform Would Save $54 Billion. In a press release, Sen. Judd Gregg said, “According to CBO, comprehensive medical liability reform would reduce national health care costs by 0.5% – which translates to $11 billion in 2009 – and reduce federal budget deficits by approximately $54 billion over the next 10 years. In addition, reform would reduce medical liability insurance premiums for doctors – often their biggest expense and the reason why some must limit or even shut their practice…Unfortunately, none of the health reform bills being promoted by the Democratic leadership even begin to address the need for comprehensive medical liability reform.” [Press Release, 10/9/09]