Sign in Subscribe
Health care industry

Senate Finance Committee to Seek Broader Analysis of Health Care Bill

Strategic Insights

— 1 min read

Senate Budget Chairman Kent Conrad revealed on Monday that the Congressional Budget Office will likely provide a cost estimate of health care overhaul legislation being written by the Senate Finance Committee, extending beyond the normal 10-year time frame. This move comes as proponents hope to allay concerns over the measure's long-term fiscal impact. President Obama had previously vowed not to sign any health care bill that adds "one dime to the deficit, now or in the future."

Key Takeaways:

  • The Congressional Budget Office (CBO) will likely provide a cost estimate of the Senate Finance Committee's health care bill over a 20-year period, rather than the standard 10-year timeframe.
  • The CBO's estimate will measure the bill's deficit impact as a percentage of gross domestic product (GDP) during the second 10 years, rather than providing specific figures.
  • The Senate Finance Committee's health care bill is expected to be released this week, and its authors hope that a broader analysis will allay concerns over its long-term fiscal impact.
  • CBO Director Douglas Elmendorf previously testified that the House and Senate Health, Education, Labor and Pensions Committee bills would not meet the goal of slowing the growth in health care spending after 10 years.
  • An analysis by The Lewin Group estimated that the House bill would add more than $1 trillion to the deficit in the second decade of its enactment.

Statistics:

  • CBO will estimate the cost of the bill over 20 years, rather than the standard 10-year period.
  • The estimate will measure the bill's deficit impact as a percentage of GDP during the second 10 years.
  • The Lewin Group analysis estimated that the House bill would add more than $1 trillion to the deficit in the second decade of its enactment.

Sources:

  • CQ Today Round-the-clock coverage of news from Capitol Hill. [c]2009 Congressional Quarterly Inc. All Rights Reserved.
  • Testimony of Douglas Elmendorf, CBO Director, before the Senate Budget Committee, July 16.

Read more