Some say the House's proposed healthcare reform
legislation, which includes cuts to Medicare and Medicaid, as well as a public
health insurance plan, will prevent rising healthcare costs from bankrupting
the country. Not so, says the head of the Congressional Budget Office.
Speaking to the Senate Budget Committee on Thursday, CBO
chief Douglas Elmendorf said that the congressional reform efforts proposed so
far would actually increase the spending curve over time. In order to slow
growth and positively affect the spending trajectory, Elmendorf told lawmakers
they should alter Medicare's provider payment system to include incentives to
reduce costs. He also advocated a tax on employer-sponsored health insurance
benefits, a widely unpopular idea that was scrapped from both the House and Senate
drafts.
Recently, a CBO analysis of the Senate Health, Education,
Labor and Pensions Committee's reform proposal caused fiscal conservatives from
both sides of the aisle to revolt against the measure, decrying its exorbitant
costs. This new testimony is sure to galvanize Republicans and Blue Dog
Democrats against the House plan, as well, reports the Washington Post.