CBO deals blow to Blue Dogs - tethering public option to Medicare would save $110 billion (politico)

[jefferson_dem]

CBO estimate deals blow to Blue Dogs

The Congressional Budget Office dealt Blue Dogs a blow Thursday by notifying House Democrats that tethering a public option to Medicare reimbursement rates would save the government $110 billion more than a public option in which the government has to negotiate rates with doctors and other health care providers.

The initial projections showed the difference between the two was $65 billion. But this shows it would cost the government a lot more money to heed moderate demands.

House Democrats need to trim as much as $200 billion from a bill that most estimates peg at $1.1 trillion in order to meet President Obama's $900 billion target.

CORRECTION: There has been some confusion among members this afternoon about the actual score that CBO released - ours is based on multiple conversations with members and staff. It looks like the total savings for a public option that was included in the Education and Labor Committee (which reimburses health care providers at rates that are 5 percent higher than those set by Medicare) would save the government $110 billion. A public option in which the government must negotiate its rates with doctors and other health care providers would save the government $25 billion. So the difference is $85 billion, not $110 billion, as I previously wrote.

But none of these figures is based on an actual CBO report; instead, these are based on conversations with lawmakers and aides who attended an afternoon caucus meeting in the Capitol basement on Thursday.

http://www.politico.com/livepulse/0909/CBO_estimate_deals_blow_to_Blue_Dogs.html?showall

[Newshues]

1. The Blue Dogs opposition to tieing rates to Medicare

isn't based on saving the federal government money. Their opposition is that Medicare rates do not pay enough to rural hospitals, generally speaking, such that private payers of all types are subsidizing Medicare patients in many, if not most, rural hospitals. Most of the Blue Dogs come from conservative leaning RURAL districts.

They have a point. Rather than hold up meaningful health care reform they can solve the problem of rural hospitals another way. What's clear is that none of them want to go back to their districts and be unable to defend themselves from attacks for putting their local, rural, hospitals at risk.

[kestrel91316]

2. MEDICARE FOR ALL!!!! SINGLE PAYER NOW!!!!

[Clio the Leo]

3. kicking for general principles.NT

[livetohike]

4. I think the GOP representatives are having a fit right now with

this news. I believe Pres. Obama has them so confused. Their pea brains cannot absorb any more info. He is dancing circles around them.

[andym]

5. Promising and perhaps the Medicare for All CBO score will even be better... nt

[BeyondGeography]

6. B-b-b-b-ut it's still PUBLIC

The horror.

[SpartanDem]

7. I hope Rockefeller beats the shit PO haters with this stick tommorow

[elleng]

8. Good, but not based on a REPORT.

Is cbo doing a report on such? Haven't they resisited such? Would be great!

Can't imagine cost of govt having to negotiate with all, but thats just me and my small mind!