Archive: October, 2010
By guest blogger Robert Field:
The nonpartisan Congressional Budget Office predicts that, despite the almost $1 trillion price tag, health reform will actually save the government money in the long run. How can that be? The answer, according to CBO, is that the spending is offset by cutbacks in other areas and by a number of new taxes. How accurate is the CBO’s prediction, and what effect will health reform really have on costs?
In terms of cost to the government, the CBO’s prediction is the best we have, but there is still a lot of room for error. In costing out, or “scoring”, legislation, the agency makes its best guess as to spending and savings over the next ten years. Needless to say, predictions about anything ten years from now are difficult, let alone one of the most dynamic sectors of the economy.