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  New CBO Estimate Increases Cost of Health Reform by $115 Billion  
 

The AP (5/12, Alonso-Zaldivar) reports, "President Barack Obama's new health care law could potentially add at least $115 billion more to government health care spending over the next 10 years, congressional budget referees said Tuesday. If Congress approves all the additional spending called for in the legislation, it would push the ten-year cost of the overhaul above $1 trillion -- an unofficial limit the Obama administration set early on." According to the CBO, "the added spending includes $10 billion to $20 billion in administrative costs to federal agencies carrying out the law, as well as $34 billion for community health centers and $39 billion for Indian health care."

 

        The Hill (5/12, Pecquet, subscription required) says that Energy and Commerce Republicans stated, "We can expect the true cost to grow even higher, since CBO noted this new estimate does not include 38 sections of grant programs, which cover 406 pages of legislation. ... While the Democrat authors of the law did not specify a funding level for these particular programs, they are certain to further increase spending." But, the "White House quickly responded to the latest figures from CBO by pointing out that the new estimates would need to be paid for and therefore do not affect the deficit." And, despite the new CBO figures, Office of Management and Budget Communications Director Kenneth Baer said that the healthcare law "will reduce the deficit by more than $100 billion in the first decade, and that will not change unless Congress acts to change it."

 

        Politico (5/12, Haberkorn) reports, "Republicans pounced on the news, which they called another sign that the Obama administration makes promises it cannot deliver." House Minority Leader John A Boehner (R-OH) said, "The American people wanted one thing above all from health care reform: lower costs, which Washington Democrats promised, but they did not deliver." In response, "a Democratic leadership aide on Capitol Hill said the Congress will have to stay within the budget." CNN (5/12) and CQ Today (5/12, Reichard) also cover the story.

 

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