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CBO Increases Estimates of Cost of Obamacare

By Brandon Moseley
Alabama Political Reporter

Senator Jeff Session (R) from Alabama said that the estimates from the Congressional Budget Office are still rising “ominous.”  Based on this new information, Sen. Sessions, the Ranking member of the Senate Budget Committee, sent a letter to Committee Chairman Kent Conrad (D) from North Dakota urging him to set a hearing for the Committee to talk with Obama administration Health and Human Services Secretary Kathleen Sebelius.

Senator Sessions said, “President Obama told the American people his health law would cost around $900 billion over 10 years, but CBO’s numbers reveal that we will spend more than $1.75 trillion on only the coverage provisions over just 9 years. What’s more, Committee estimates show that once the law has been fully implemented (FY2014–2023), total spending under the president’s health care law will reach $2.6 trillion. CBO’s numbers also show that 4 million fewer Americans will have employer-based coverage as a result of the law, a figure we expect to rise dramatically once the new entitlement is fully implemented.“

Sen. Sessions continued, “The fact that the outlook for the law continues to worsen so rapidly, even before it is implemented, is ominous. And despite massive tax hikes and new penalties to pay for the bill, which CBO estimates have risen by another $99 billion compared to their estimates last March, Committee estimates show that the president’s health spending law will add at least $700 billion to the deficit over its first 10 years (FY2010–2019). Sadly, it may prove much worse than that.”

In his letter to Sen. Conrad Sessions wrote: “The Senate Committee on the Budget is required to report a budget resolution for fiscal year 2013 by April 1, 2012. Before we act, and as a prerequisite for any fiscal progress in the country, it is critical that we have a comprehensive understanding of how the president’s health care law will impact this nation’s unsustainable debt course.

Last week, Secretary Sebelius testified before the Senate Appropriations Committee regarding the president’s FY 2013 budget proposal. Senator Johnson asked Secretary Sebelius to explain the Administration’s recent estimates of a $111 billion increase in the cost of the premium subsidies. Secretary Sebelius was unable to explain either the cause of the increase or how the new estimate, along with the termination of the fiscally discredited CLASS Act, would alter the deficit impact of the president’s health care law. This is critical information for any financial plan for the country.

Given these revelations, it is essential that the Committee on the Budget conduct a hearing with Secretary Sebelius as soon as possible. It is a major adverse fiscal development that only two years after the president’s health care law was passed, the costs seem to be soaring.

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It appears that when the full facts are known, the ominous debt threat the nation faces will be much worse. It is imperative that we have a full hearing to analyze this troubling development.”

Senator Ron Johnson (R) from Wisconsin also signed the letter urging Chairman Conrad to hold the hearing with Sec. Sebelius.

On Monday the Congressional Budget Office (CBO) released a report raising their projections for both the gross costs of the Patient Protection and Affordable Care Act (better known as Obamacare) and the number of Americans who will lose their employer sponsored insurance because of regulations and costs associated with Obamacare.

Senator Sessions also noted that “It has now been 1,048 days since the Democrat-led Senate has offered a budget plan for the nation.”  The national debt is now $15.5 trillion and no plan has been implemented to balance the budget or to pay off that debt.

To read both of Senator Jeff Sessions statements in their entirety

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Brandon Moseley is a former reporter at the Alabama Political Reporter.

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