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Not the only ones pushing for repeal the president's health care law a group of 200 economists and experts signing a letter today.
Urging the law be changed or scrap the letter reads quote.
Health care is fiscally dangerous at a moment when the US is already facing a sea of red ink.
It creates a massive new entitlement at a time.
When the budget is already buckling under the weight of existing entitlements.
At a minimum it allowed one trillion dollars to government's spending over the next decade.
Assertions these costs are paid for based on omitted cost.
Budgetary gimmicks shifted premiums from other entitlements an unsustainable spending cuts and revenue increases.
Let's get more on this Douglas Holtz Aiken is president of the American action forum.
And a former director of the Congressional Budget Office the American action forum was the -- -- of that letter today Douglas great to see again.
-- number on our before -- in the letter I wanna go back to the point that Richardson and I just talked about.
The idea of insurance is very simple 400 people have home insurance one person's house burns down.
The other 99 who have no problems cover.
That one house that that's the way insurance -- works if we're hearing that 46%.
Of non elderly Americans.
Have some kind of a red flag pre existing condition.
Well I mean that's that's a big problem in an insurance market not I think the good news from your perspective is.
That those numbers are intended to scare people I think the last time there was a serious academic study.
1% of Americans had been turned down by an insurance company so there's a big gap between.
The scare tactic -- saying half Americans have a preexisting condition and the reality of being turned down when you apply for insurance.
Yeah and and and listen you know I understand it's difficult situation for the people -- have preexisting conditions but if I'm also hearing that up to half of non elderly.
Basically have their home already on fire.
I mean how can premiums not rise if everybody is being covered and I know it sounds like a mean way to make the argument.
I'm just trying to understand the economics of it and how the CBO year old organization has said that the health care law will reduce.
-- your analysis I think it's exactly right it's arithmetic it's one of the reasons that so many.
Economists and then Nobel Prize winners and others join me in signing the letter they're pieces of this legislation matter simply.
In defiance of arithmetic there's a new long term care insurance program that will.
Attract only the sickest.
Where were they simply will not have helping people to fill -- the risk pool.
What will happen is -- the general revenue have to pay for that program.
And what's known as budget gimmick that save seven billion dollars -- turning to fiscal cancer.
The list goes on and on this is a bill.
Which one it passed was underestimated and it's cost as a lot threatens us at a time when we're already in deep fiscal danger will listen.
The CBO now saying that if we repeal.
Health care it will -- about a 150 billion.
Over the next decade and 230 billion up to 20/20 one.
In costs so they're saying if you repeal it you're gonna add more -- the deficit and of course reducing the deficit is what many Republicans.
Of course Republicans want to reduce the deficit we need to control spending to do that.
The CBO's pump problem here the -- operates under various specific rules -- set that it have to take the legislation.
At face value so for example.
In in the class act 75 billion dollars worth of premiums are collected between now and 2000 money.
The benefits don't begin until after that so that looks like it reduces the deficit if we repeal that it looks like it increases the deficit.
The reality of course is very different we're going to spend those premiums some time and that's a fiscal danger.
Budget gimmicks of that sort are riddled all throughout this bill.
A fair reading habits suggest that raises the deficit by 500 billion and that repeal would save us those monies that -- -- -- need to go but.
That's what I'm trying to figure out what the answer is I mean we know that in some states one in three Americans is obese we're now reading of 46% of non elderly may have a preexisting condition.
I mean Americans are getting heavier it sounds like we're getting sicker we got one in what three Americans on a long term prescription drug.
How do we cover people that need it.
Right -- we're getting heavier and sicker.
And still have a plus I just don't and where does this go.
How do we figured it -- out.
First and foremost we should have a budget there is no budget for federal health care spending there's an open ended entitlement called Medicare.
There's an open ended match called Medicaid there's a new open ended subsidy for health insurance there's an open ended our long term care insurance is -- budget there anywhere so.
Begin by budgeting because if you budget you develop priorities and he did and you have an incentive to find out what quality care.
It is and he'll start I'm doing prevention.
We also do need some insurance reform there's nothing about repeal the says we shouldn't fix some things we really should have high risk pools for expensive patients.
And we really should have an insurance policy that gives the insurer.
An incentive to invest in prevention and invested a coronation instead of investing and -- expensive but I'm just trying to do.
Mean you know I'm just trying to figure out the math the average Medicare expenditures about 7400 dollars per year right so let's say F twenty years -- average that out.
So let's say you spend a 140000.
Dollars in Medicare on the average Medicare recipient.
That person may have contributed you know 20000 dollars over their lifetime now multiply that by millions and millions and millions of people.
And I'm just wondering win the health care debate it's really solved fiscally.
-- it tough for everybody for everything no matter what their conditions how are we going to afford.
It you can't and we need to begin by fixing Medicare that should have been the top priority both from a fiscal point here because they arithmetic you just did -- -- right.
And from of that -- point of view we don't have.
Good coordinate care with fee for service medicine Medicare it's been shown to be out lower quality medicine so we do need to do those things into -- now.
We also in -- in the the new law have have once again.
-- basically misled the American people we have said insurance is unaffordable -- takes more than 10% of your income.
As a nation health care takes 20s% of our income you can't promise you know they're only gonna spend 10% when -- cost wanting where's the money come from.
Good point used to be food now it's healthcare they flip flop Douglas Holtz Aiken thank you very much.
Thank you -- Welsh.
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