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Tuesday, November 17, 2009

Beijing Questions Obama's Healthcare Plan and it's Impact on U.S. Deficit

From Reuters:

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions....Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade....Nothing happening in Washington today should give Beijing any comfort or confidence about what may happen tomorrow. Healthcare reform was originally promoted as a way to “bend the curve” on escalating entitlement costs, the major part of which is financing Medicare and Medicaid. That is looking more and more like an overpromised deliverable....
For instance, a new study from the U.S. government’s Centers for Medicare and Medicaid Services finds that the healthcare reform bill recently passed in the House of Representatives would increase healthcare spending to 21.3 percent of GDP by 2019 compared with 20.8 percent under current law. That’s bending the curve the wrong way. The study also questions the “long-term viability” of the $500 billion in Medicare cuts meant to help pay for expanded insurance coverage.....In addition, the CMS study gives a clearer cost estimate than the one provided by the Congressional Budget Office. According to the CBO, the 10-year cost of PelosiCare is $894 billion. But that analysis includes early years with little government spending, According to the CMS, the House approach would cost $1 trillion from 2013-2019, or some $140 billion a year when fully put into effect.




Read Here: http://blogs.reuters.com/james-pethokoukis/2009/11/16/china-questions-costs-of-us-healthcare-reform/

1 comment:

life insurance rbc said...

Hi. Well, when I first heard that Mr. Obama would face the health care situation I believed there would be an improvement, but now the reform seems to be an unhappy choice. No wonder that the Chinese are worried, it is about their money, isn't it?
The problem is that people should finally realize that health care shouldn't be a profitable business, but it should help the people when they need it.
Take care,
Lorne