Yikes! House health care bill cost: $1.2 trillion!

The health care bill headed for a vote in the House this week costs $1.2 trillion or more over a decade, according to numerous Democratic officials and figures contained in an analysis by congressional budget experts, far higher than the $900 billion cited by President Barack Obama as a price tag for his reform plan.

While the Congressional Budget Office has put the cost of expanding coverage in the legislation at roughly $1 trillion, Democrats added billions more on higher spending for public health, a reinsurance program to hold down retiree health costs, payments for preventive services and more.

Many of the additions are designed to improve benefits or ease access to coverage in government programs. The officials who provided overall cost estimates did so on condition of anonymity, saying they were not authorized to discuss them.

House Speaker Nancy Pelosi has referred repeatedly to the bill’s net cost of $894 billion over a decade for coverage.

Asked about the higher estimate, Pelosi spokesman Brendan Daly said the measure not only insures 36 million more Americans, it provides critical health insurance reform in a way that is fiscally sound.

“It will not add one dime to the deficit. In fact, the CBO said last week that it will reduce the deficit both in the first 10 years and in the second 10 years,” Daly said.

Democrats have been intent on passing legislation this year to implement Obama’s call for expanded coverage for millions, curbs on industry abuses and provisions to slow the rate of growth of health care costs nationally.

“Now, add it all up, and the plan I’m proposing will cost around $900 billion over 10 years,” the president said in a nationally televised speech in early September.

Whatever the final cost of legislation, the calendar is working increasingly against the White House and Democrats. While a House vote is possible late this week, Senate Majority Leader Harry Reid, D-Nev., may not be able to begin debate on the issue until the week before Thanksgiving. Additionally, the Republican leader, Sen. Mitch McConnell of Kentucky, has hinted at efforts to extend the debate for weeks if not months, a timetable that could extend into 2010.

One casualty of the time crunch and threatened Republican delaying tactics may be formal House-Senate negotiations on a final compromise. An alternative is a less formal hurry-up final negotiation involving the White House and senior Democrats.

Pelosi and her lieutenants worked on last-minute changes in the measure to ease concerns among opponents of abortion and a contentious provision relating to illegal immigrants. Conservative Democrats have expressed concern about the cost of the bill, and an evening closed-door meeting gave the leadership its first chance to hear their response.

The bill includes an option for a government-run health plan.

The leadership can afford more than two dozen defections and still be assured of the votes to prevail on the bill, one of the most sweeping measures in recent years.

Republicans put the cost of the bill at nearly $1.3 trillion.

“Our goal is to make it as difficult as possible for” Democrats to pass it, House Republican leader John Boehner, R-Ohio, said at a news conference. “We believe it is the wrong prescription.”

One day after announcing Republicans would have an alternative measure, Boehner offered few details. He said it would omit one of the central provisions in Democratic bills — a ban on the insurance industry’s practice of denying coverage on the basis of pre-existing medical conditions. Instead, he said the Republicans would encourage creation of insurance pools for high-risk individuals and take other steps to ease their access to coverage.

Boehner also said Republicans would propose limits on medical malpractice lawsuits in what he said was an attempt to reduce the cost of coverage.

Rep. Mike Pence, R-Ind., the third-ranking leader, said that Democrats looked at their bill as a way to advance universal coverage. In contrast, he said, Republicans “believe the real issue back home is cost” of insurance, and said their alternative would be designed to tackle it.

Democrats have made elimination of the industry’s practice a linchpin of their drive to overhaul the health care system. The industry has said it would not fight the change, and an accompanying restriction on its ability to charge higher premiums for certain groups, as the legislation includes a requirement for individuals to purchase insurance. Lacking that, the industry says millions of relatively healthy individuals would refuse to pay for coverage until they became sick, and the cost of premiums would rise sharply for everyone else.

Republicans oppose any government requirements for individuals to purchase insurance or for businesses to provide coverage.

The Congressional Budget Office is seen by lawmakers as the arbiter of claims about the costs and effects of proposed legislation, and the agency has been under intense pressure in recent weeks to compete assessments on several bills circulating in House and Senate.

In a letter last week, the agency’s director, Dr. Douglas Elmendorf, said the net cost of expanding coverage in the House measure was estimated at $894 billion over 10 years, a figure reflecting a gross total of $1 trillion in federal subsidies as well as other spending.

The letter contained no similar assessment for the balance of the legislation and it was not clear when or whether one would be forthcoming.

In a letter last week to Sen. Max Baucus, D-Mont., on the general subject of health care, Elmendorf cautioned that some provisions in legislation have elements that raise costs and elements that lower costs.

“Tabulating all of the aspects of the proposal that would, in isolation, increase federal outlays would be complicated and would require somewhat arbitrary judgments” about calculating overall costs, Elmendorf said.


  1. Carl Nemo

    As outrageous as the 1.2 Trillion sounds they aren’t allowing for the upcoming ravages of inflation to hyperinflation as a function of the Fed~U.S. Treasury “funny money” axis collapsing due to a mass exodus from the U.S. dollar as the world’s reserve currency. When this bust happens, then we’ll be for all practical purposes become a “banana republic”, simply a minor plantation in the global new world order.

    I’d give a conservative estimate that this 1.2T will balloon to 10x that amount within 10 years or less; ie., if we are still around as a sovereign nation of which I have strong doubts.

    We’ll be here physically, but probably using the Amero for replacment “fiat” currency with everyone from the Arctic Circle to the Panama Canal Zone one huge, not so “kumbaya” family.

    This House Bill must fail if we are to maintain any vestige of our waning freedoms! This is an example of the federal government run amok!

    Tis better to die on the side of the road with an untreated, painful cancer than to give up freedom for a bowl of healthcare pottage! : |

    Carl Nemo **==

  2. woody188

    Obviously we can’t trust a single thing they say, do, or write. I hate Joe Lieberman but I hope a filibuster is successful.

    Our Liberties We Prize and Our Rights We Will Maintain

  3. Sandra Price

    Many thanks Carl….for the Swanson’s site. I receive great emails and will order the vitamins when I get home. I’m cleaning up all the old supplements and will start fresh after I call them with my age, sex and all the rest. Women my age have special needs to at least act our ages.


  4. MightyMo

    I’m affraid I simply don’t know what to think any more.

    Looking at the nation as a whole, think about how much we currently pay for health as businesses, as individuals, as government. I can’t begin to imagine what it is, but based on an inflated system, the amount of money must be staggering.

    Now take away all of that and start a health care system that isn’t inflated, where the price of coverage is expected to be affordable, where drugs are obtained at reasonable prices, where malpractice isn’t so much of an issue….

    I can’t see the price tag actually being 1 trillion. I see total cost at possibly 1 trillion, but when you concider what we as citizens will be saving, we can afford to pay down much of that 1 trillion.

    I find these numbers hard to fathom when I know the system works so affordably everywhere else. How come they can make this work, but we seem to feel we will go broke implementing it.

    If the burden is strictly put on the government, sure it may cost 1 trillion. But if we put back into the system some of the money we should save, then it won’t be that bad; I hope!

    All I know is that we can’t keep doing what we have been doing.

  5. Carl Nemo

    Hi MightyMo,

    I understand your frustration concerning the projected costs.

    The problem with our nation is that we no longer have a reasonable number of honest legislators, leaders and heads of corporations to do the right thing without terminal greed overshadowing their decision making.

    Today it was revealed that there are as many as 65,000 contractors sucking on the Iraqi and Afghani war effort with little to no accountability. When high level U.S. Army administrators were questioned on this issue; they said that everything was managed on a “good faith” basis predicated on some memorandum of understanding put out by Congress a number of years back in the early days of the Iraqi conflict. Say what?! The estimated amounts of unaccounted money is pushing 40 billion dollars per annum. I’m not saying that the greater portion of the money is not being utilized in some meaningful fashion, but the fact there is absolutely “NO” accountability between the contractors and the defense establishment is outrageous. This scandal is simply another of many occurring simultaneously from Medicare fraud, VA care fraud, Defense Dept. related fraud and no doubt hundreds if not thousands of other pockets of outright theft of taxpayer money all going on at this time.

    There are no good men or women left on Gotham’s city council. Everyone is corrupt to some lesser or greater degree. It seems our national epitaph will read…”Here lies a nation who’s demise was the result of a collective unquenchable lust for money and power, consequences be damned”.

    “All I know is that we can’t keep doing what we have been doing.” extract from post

    The health care industry will continue to do what its been doing and worse. No one will be satisified until everything is dysfunctional to outright inoperable with national financial chaos the end result of the aforementioned terminal greed.

    Nothing good will come out of this 2000 page healthcare monstrosity. I guarantee…!

    Carl Nemo **==

  6. Carl Nemo

    Hi bjiller,

    Thanks for your short comment. Unfortunately just the Iraqi zone of conflict has cost almost $740 billion since 2003!


    Obviously with this much having been spent along with many billions having been misappropriated or stolen outright is small change to our uncaring, out of control crimpols in Congress.

    Carl Nemo **==