SGR bill would add $141 billion to deficit, Congressional Budget Office says
Cost of repealing Medicare's sustainable growth rate would add $145 billion in government spending, report claims.
The H.R. 2 bill was led by Speaker John Boehner, R-Ohio and House Minority Leader Nancy Pelosi, D-Calif.
According to the Congressional Budget Office, the just-released bill that outlines the cost of repealing Medicare’s sustainable growth rate would add $145 billion in government spending, widening the deficit.
Specifically, the CBO report released Wednesday said the H.R. 2 bill would also increase revenues by about $4 billion, for a total $141 billion increase in the federal budget deficit.
[Also: SGR bill raises premiums for weathly Medicare recipients]
In addition, a CBO analysis comparing the budgetary effects of the bill to a policy that would freeze Medicare payment rates to physicians at current levels, estimates that enacting H.R. 2 would cost $900,000 million less over the 2015–2025 period than freezing payment for physicians’ services.
The CBO also said the effects of the bill on monthly premiums for Part B of Medicare in 2025 would be considerable since it would raise basic monthly Part B premiums by about $10 in 2025. By comparison, CBO estimates that the basic monthly premium would increase by about $7.50 in 2025 if Medicare’s payment rates for physicians’ services were frozen at current levels. Part B is the medical insurance covering doctors’ services, outpatient care, home health services, and other medical services.
[Also: No ICD-10 delay in SGR fix]
CBO said it was impossible to gauge the effects of the bill after 2025 since there is no way to know how healthcare delivery models will change.
Due to uncertainty about the evolution of health care delivery, a second supplemental analysis examining the effects of the bill on deficits during the decade after 2025 is not feasible, according to the CBO.
Though H.R. 2 has bipartisan support and was led by Speaker John Boehner, R-Ohio and House Minority Leader Nancy Pelosi, D-Calif., Senate Minority Leader Harry Reid, D-Nev., has voiced opposition to the package.
Here's the full report:
Twitter: @SusanMorseHFN
