WASHINGTON, D.C. - Rep. Pete Stark (D-CA), Chairman of the House Ways and Means Health Subcommittee, today responded to the release of a letter from the Congressional Budget Office (CBO) to Majority Leader Steny Hoyer on the cost-cutting measures in H.R. 3200, America`s Affordable Health Choices Act.
Chairman Stark: "CBO states HR 3200, the House health reform bill controls long-term costs in the health care delivery system. CBO further contends that an independent commission for Medicare-IMAC- would have a `high probability` that there would be no long-term savings."
Some key excerpts from the CBO letter:
HR 3200 ALREADY WOULD SLOW MEDICARE TREND TO BELOW ANTICIPATED INFLATION: "Under HR 3200, as introduced, payment rates for nearly all Medicare services would grow more slowly than anticipated inflation."
INDEPENDENT MEDICARE COMMISSION UNLIKELY TO YIELD SIGNIFICANT SAVINGS BEYOND WHAT ALREADY IN BILLIN THE CURRENT BUDGET WINDOW: "CBO considers it unlikely that IMAC would recommend substantial additional savings (relative to savings already expected under HR 3200) through further reductions in Medicare payment rates."
HR 3200 IN ITS CURRENT FORM WILL LEAD TO SUBSTANTIAL LONG-TERM SAVINGS: "Several percent of annual Medicare spending would amount to tens of billions of dollars per year after 2019. By that point, H.R. 3200, as introduced, would already be on track to achieve tens of billions of dollars in Medicare savings each year."
CBO CLARIFIES THAT THE INCREASED FEDERAL HEALTH SPENDING UNDER THE BILL IS A RESULT OF COVERING EVERYONE: "Total federal resources devoted to health care programs would increase under the introduced version of that bill, however, because of the provisions aimed at making health insurance available to more people."
