- Dec 29, 2008
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WASHINGTON (AP) - Democrats' health care bills won't meet President Barack Obama's goal of slowing the ruinous rise of medical costs, Congress' budget umpire warned on Thursday, giving weight to critics who say the legislation could break the bank.
The sobering assessment from Congressional Budget Office Director Douglas Elmendorf came as House Democrats pushed to pass a partisan bill through committees, while in the Senate a small group of lawmakers continued to seek a deal that could win support from both political parties.
With the pressure mounting on all sides, Senate Majority Leader Harry Reid, D-Nev., dismissed as "a waste of money" a television ad campaign by Obama's political organization aiming to nudge moderate Democrats off the fence. He called it "Democrats running ads against Democrats."
From the beginning of the health care debate, Obama has insisted that any overhaul must "bend the curve" of rapidly rising costs that threaten to swamp the budgets of government, businesses and families.
Asked by Senate Budget Committee Chairman Kent Conrad, D-N.D., if the evolving legislation would bend the cost curve, the budget director responded that "the curve is being raised."
Explained Elmendorf: "In the legislation that has been reported, we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount. And on the contrary, the legislation significantly expands the federal responsibility for health care costs."
Even if the congressional legislation doesn't add to the federal deficit over the next years, Elmendorf said costs over the long run would keep rising at an unsustainable pace. Part of the reason is that Obama and most Democrats have refused to accept a tax on high-cost health insurance plans as part of the overhaul. There's wide agreement among economists that such a tax would give businesses and individuals an incentive to become thriftier consumers of health care.
Despite the flashing yellow light from the budget office, Congress pushed ahead Thursday.
Excite News - Budget umpire: Health care bills would raise costs
The sobering assessment from Congressional Budget Office Director Douglas Elmendorf came as House Democrats pushed to pass a partisan bill through committees, while in the Senate a small group of lawmakers continued to seek a deal that could win support from both political parties.
With the pressure mounting on all sides, Senate Majority Leader Harry Reid, D-Nev., dismissed as "a waste of money" a television ad campaign by Obama's political organization aiming to nudge moderate Democrats off the fence. He called it "Democrats running ads against Democrats."
From the beginning of the health care debate, Obama has insisted that any overhaul must "bend the curve" of rapidly rising costs that threaten to swamp the budgets of government, businesses and families.
Asked by Senate Budget Committee Chairman Kent Conrad, D-N.D., if the evolving legislation would bend the cost curve, the budget director responded that "the curve is being raised."
Explained Elmendorf: "In the legislation that has been reported, we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount. And on the contrary, the legislation significantly expands the federal responsibility for health care costs."
Even if the congressional legislation doesn't add to the federal deficit over the next years, Elmendorf said costs over the long run would keep rising at an unsustainable pace. Part of the reason is that Obama and most Democrats have refused to accept a tax on high-cost health insurance plans as part of the overhaul. There's wide agreement among economists that such a tax would give businesses and individuals an incentive to become thriftier consumers of health care.
Despite the flashing yellow light from the budget office, Congress pushed ahead Thursday.
Excite News - Budget umpire: Health care bills would raise costs
