Obama’s health reforms would save only 1% of the amount promised, says Congressional Budget Office « AAPS News of the Day

Obama’s health reforms would save only 1% of the amount promised, says Congressional Budget Office « AAPS News of the Day: "Obama’s health reforms would save only 1% of the amount promised, says Congressional Budget Office February 1st, 2009

Before leaving the Congressional Budget Office (CBO) to become Obama’s budget director, Peter Orszag tallied up the growth of entitlements. Medicare and Medicaid are expected to swell to $1.4 trillion, or nearly 30% of the federal budget within 10 years.

The Democrats’ response is to pile on more obligations. Allowing the non-poor to buy into Medicaid would cost $7.8 billion over 10 years. In addition, one plan to make both private and public options less costly for the beneficiary would add $65.5 billion, and having the government pay higher cost claims would hit $752 billion.

Adding up all 115 proposed reforms would be $150 to $200 billion per year in recurring obligations (“Orszag’s Health Warning,” Wall St J 10/29/08).

During the campaign, Obama’s health advisors said that they could actually save the average American household $2,500 per year through reforms such as coordinated care, preventive care, evidence-based care, pay for performance, electronic medical records, etc. The bad news from CBO: the maximal savings from all of the above would be 1% of what the Obama te"