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Obamacare Raids Medicare and Makes Off With $716 Billion

Obamacare would snatch $716 billion from Medicare to pay for its expensive outlays, an startling increase of nearly $200 billion from the original estimate of the law’s impact, according to an analysis by the independent Congressional Budget Office .

The new numbers create a potential political hazard for President Obama, who desperately needs the votes of Medicare beneficiaries in senior-rich swing states like Florida and Pennsylvania.

What’s more, the cuts are regressive, affecting all beneficiaries, since they are aimed at health care providers. Serious Medicare reform, which Obama has studiously avoided during his years as president, would be much more targeted toward benefits, particularly those of wealthier seniors.

The CBO study, which comes in a analysis of GOP-backed legislation to repeal Obamacare, finds that repeal would recoup $716 billion in cuts to Medicare that Obamacare would make from 2013-2022.

According to CBO:

Of that amount, higher payments for hospital services account for $260 billion; for skilled nursing services, $39 billion; for hospice services, $17 billion; for home health services, $66 billion; and for all other services, $33 billion.

An analysis of the original March 20, 2010 CBO estimate found that Obamacare would cost Medicare $533 billion dollars during the 2010-2019 ten year period, according to the Kaiser Family Foundation, the independent health policy analysis group relied on by both Democrats and Republicans,.

Since the new estimate covers a later ten year period, the increase in Obamacare’s take from Medicare is not due to a mistake in the original estimate, but to a real and growing adverse effect of Obamacare on Medicare’s finances over time.

The huge cuts in Medicare, coupled with dramatic increases in taxes, were part of an effort by the law’s authors to overcompensate for the costs of Obamacare so they could sell the legislation as a measure that would reduce the deficit.

It does, but at substantial and growing cost to Medicare.

What’s more, the small surplus Obamacare generates is also declining, according to Chuck Blahous, one of the officials who oversees Medicare and Social Security’s finances as a Public Trustee of the programs.

Blahous, a budget expert and a former aide to George W. Bush, writes that CBO’s current estimate of the deficit savings by Obamacare over ten years is lower than last year’s estimate has been cut nearly in half from the original 2010 projection.

H/T to Alyene Senger of The Foundry, The Heritage Foundation’s blog.

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24 Responses to Obamacare Raids Medicare and Makes Off With $716 Billion

  1. Thanks for keeping the issue alive. Unfortunately I am not surprised by the new numbers. My first career was hospital administration and believe me, the ACA is anything BUT the true healthcare reform the system so desperately needs.
    Pelosi and Reid kept out all the good stuff (purchasing across state lines, increased health savings accounts instead of penalizing them, leveling the tax treatment, tort reform, price transparency, replacing the Medicare “quality of life” driver with “medically necessary” for payment, and that’s just for starters.) that could actually lower the cost curve and bring people into the system without overwhelming it.
    But we all know, “reform” wasn’t the point was it? The ACA was and is the worst piece of legislation to ever emerge from the bowels of that swamp yet all the minion media does is promote the administration’s talking points praising “free” this and “free” that.
    Have we really sunk so low as a nation that millions truly now believe that government “stuff” truly is “free”?

    • Unfortunately, it would seem so.

      My doctor told me that healthcare reform could have been accomplished with a bill totaling about ten pages. Maybe he was over-simplyfing a bit but I got his point, the wheel did not have to be re-invented with government control. Why on God’s green earth could Chief Justice Roberts not have done the right thing and struck this abomination down?

      • He’s not over simplifying at all. My wife is still a healthcare administrator and I’m still in daily contact with the profession, the ACA will only make things worse, not better.
        I’m lucky because of personal relationships I’ll pretty much always have access to a physician, but unless this monstrosity gets repealed and repealed quickly, tens of millions of Americans won’t.

  2. the only people that want obamacare is the ones that what all their stuff for free without working for it. the people that pay taxes don’t want the goverment to handle anything for them. we know that everything that is gov. in the country is shit.

  3. There isn’t a damn thing we can do now about the Obamacare theft of Medicare funds, or the unintended consequences of poorly-thought out changes to healthcare. Unless we change the people or attitudes of our elected officials, we will be stuck with a social disaster of unprecedented magnitude.

    The only way to repeal this act is to elect a majority of conservatives to both houses of Congress in November. We can then address national healthcare issues in a responsible and careful way.

    • Couldn’t agree more. But along with them being conservative they’d better have very, very thick skin. The barrage of hate the minion media will throw at them will be unlike any ever seen before.

      Grandma will be dead in a year, children will be thrown into trash trucks, the rivers will burn and the sky will go black.

      Returning Congress to the control of “citizen legislatures” the Founders intended will do more to help future generations than any entitlement program.

  4. CORRUPTION . . .

    http://news.yahoo.com/gop-hits-obama-lobbyist-meetings-caribou-100052801–abc-news-politics.html

    “Other emails show then White House chief of staff Jim Messina using a non-governmental account to discuss language for the health care reform bill with a pharmaceutical industry lobbyist. In one message from March 2010, Messina assures the lobbyist he would overcome opposition from then House Speaker Nancy Pelosi to achieve more favorable legislation.

    “I will roll [P]elosi to get the 4 billion,” Messina told Pharmaceutical Research and Manufacturers of America lobbyist Jeffrey Forbes. “As you may have heard I am literally rolling over the house. But there just isn’t 8-10 billion.”

    Republicans say Messina’s emails from his personal account potentially violate the Presidential Records Act, which requires that all official executive branch communications be archived for public record.”

  5. Geoff Caldwell and Cooper made some good points. It would have been better to pass a series of small bills to deal with the individual problems. The ACA does not make sense when the government has to hire an additional 16,000 IRS agents to enforce it. It will be more complicated than filling out your income tax. When millions are added to coverage where are the doctors and nurses going to come from? It takes 9 -10 years to train a doctor. Also, look at all the labor unions and companies who have been given waivers.

    • The government wants to take over the entire healthcare system. Heck, the government wants to control everything. In the “old” Soviet Union, everyone was a government employee and that is the ultimate goal of Obamao and his merry Marxist minions. Taking over the healthcare system, making it “necessary” to hire an additional 16,000 IRS employees is a good start. That’s why, I believe, Obamao welcomes high unemployment; it’s simply a means to an end. The man and his acolytes are a grave danger to our free way of life.

  6. The GOP needs to keep hammering these numbers home to the American people. With so many of us baby-boomers hitting retirement age, we need medical care and we do vote and take our kids who are still living with us to the polls as well.
    How was that Chicken samich yesterday?

  7. Obama and his true believers could give a whit about the elderly. There is no place for the elderly in their utopia. Just read about Obot czar Ezekiel Emanuel (the creepy ballerina’s brother) and his ‘complete lives system’ of medical treatment. These statists believe the elderly have served their usefulness to the state. In their utopia, it is time for the elderly to make way for young workers, and go quietly to the Soylent Green factory in the sky. It’s all for the greater good of the collective, you know.

    These statists are spending money fast and furiously before the election because they know their time is running out. They will try to imbed their socialist ideals so far into governmental operations that it will be near impossible for them to be reversed. They will fail in their mission. We the People are coming for them in November. We will be electing legislators who have pledged to repeal every word and every regulation related to ObamaTAX. Socialized medicine will not stand in America.

  8. Young or old, Democrat, Republican, or Independent, this will affect YOU if the laws go into effect ! You will no longer have a private life without government control, from birth to death !

    Please watch the entire video….it is ALMOST unbelievable! Then forward it to everyone you know. click on website below….

    http://www.youtube.com/watch_popup?v=HcBaSP31Be8&vg=medium

    And……in addition to all these “attributes,” the cost of our Medicare insurance will continue to sky rocket!

    • Oh yes you have. I have it on very good authority (an “anonymous” source inside BOTH the Reid and Obama camps) that the first requirement to a job as a White House troll is to read their press releases. Now those are some “outright BS”!