Congressional Budget Office Deals Blow to Clinton's Health Care Plan

The nonpartisan Congressional Budget Office has presented a damming report on President Clinton's health care plan, casting significant doubts on its feasibility. The report recommends incorporating the plan into the federal budget, estimating it will increase federal spending by nearly $1.4 trillion and raise the federal budget deficit by over $70 billion between 1995 and 2000. This is in stark contrast to the administration's estimate that the plan would reduce the deficit by about $60 billion between the same time period.

The CBO's findings have further fueled the Republican opposition to Clinton's 1995 budget proposal, with Senate Republican leader Robert Dole calling the plan a "multibillion-dollar dose of deficit spending and government control." Clinton, however, downplayed the significance of the report, stating that the issue is a "Washington policy wonk deal" and that "no serious person out here in the real world will be too troubled by that."

Key Takeaways:

• The Congressional Budget Office recommends incorporating President Clinton's health care plan into the federal budget.
• The plan is estimated to increase federal spending by nearly $1.4 trillion and raise the federal budget deficit by over $70 billion between 1995 and 2000.
• The CBO's report is in contrast to the administration's estimate that the plan would reduce the deficit by about $60 billion between 1995 and 2000.
• Senate Republican leader Robert Dole estimated that the plan would require $1.4 trillion in mandated health care premiums paid by employers.
• The CBO grappled with the issue of how to treat premiums that individuals and employers pay to health alliances, recommending that they be included in the federal government's accounts and treated separately from other federal activities.
• Social Security is treated as off-budget but included in the federal government's accounts.

Statistics:

• Federal spending estimates: $1.4 trillion (CBO report) vs. not provided (administration estimate)
• Federal budget deficit estimates: $70 billion (CBO report) vs. -$60 billion (administration estimate) between 1995 and 2000.
• Mandatory health care premiums paid by employers: $1.4 trillion (estimated by Senate Republican leader Robert Dole)

Sources:

• "Budget Office Deals Blow to Clinton's Health Care Plan" (unnamed publication), cited in the original text