When the CBO scored the Baucus plan, it found that it did not widen the deficit, under the assumption (among others) of drastic cuts in Medicare reimbursements. The CBO report was skeptical that the cuts would actually happen:
These projections assume that the proposals are enacted and remain unchanged throughout the next two decades, which is often not the case for major legislation. For example, the sustainable growth rate (SGR) mechanism governing Medicare’s payments to physicians has frequently been modified (either through legislation or administrative action) to avoid reductions in those payments. . . The long-term budgetary impact could be quite different if those provisions were ultimately changed or not fully implemented.
The CBO’s skepticism was with good reason. Democrats have already introduced the bill that would boost Medicare reimbursements. So the plan that the committee asked the CBO to score was a lie. There’s no other word for it.
Anyway, with the new legislation, we’re looking at hundreds of billions in new spending and new deficits.
POSTSCRIPT: It will be entertaining to watch the Democrats waive “PAYGO” for this thing; proving that PAYGO is a complete sham.
(Via Hot Air.)
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