Experts: Health-care measure would cost $829B over 10 years

WASHINGTON (AP) — Health-care legislation drafted by a key Senate committee would expand coverage to 94 percent of all eligible Americans at a 10-year cost of $829 billion, congressional budget experts said Wednesday, a preliminary estimate trumpeted by the White House and likely to power the measure past a major hurdle within days.

The Congressional Budget Office added that the legislation would reduce federal deficits by $81 billion over a decade and probably lead to “continued reductions in federal” red ink in the years beyond.

The report paves the way for the Senate Finance Committee to vote as soon as early next week on the legislation, which is largely in line with President Barack Obama’s call for the most sweeping overhaul of the nation’s health-care system in a half-century.

At the White House, spokesman Reid Cherlin said the analysis “confirms that we can provide stability and security for Americans with insurance and affordable options for uninsured Americans without adding a dime to the deficit and saving money over the long term.”

Sen. Max Baucus, D-Mont., the committee chairman and principal architect of the measure, hailed the estimates within moments of receiving them.

“This legislation, I believe, is a smart investment on our federal balance sheet. It’s an even smarter investment for American families, businesses and our economy,” he said on the Senate floor.

Sen. Chuck Grassley of Iowa, the senior Republican on the panel, saw it differently. “A celebration of the deficit effects masks who pays the bills. This package includes hundreds of billions of dollars in new taxes and fees,” he said in a statement.

The committee Baucus chairs is the fifth and last of the congressional panels to debate health care. The Senate Finance version has a decided middle-of-the-road flavor, shunning any provision for the government to sell insurance in competition with private industry. That provision, strongly favored by many Democrats and just as strongly opposed by Republicans, is still alive in proposed House versions of the legislation.

The Finance Committee bill does not require businesses to offer coverage to their workers, either, although large firms that do not would be required to offset the cost of any government subsidies going to those employees.

Though generally positive about the legislation’s effects, the report contained important caveats.

One noted that the estimate does not include the costs of proposed payment increases for doctors serving Medicare patients, roughly $200 billion through 2019.

Beginning in 2013, the measure would require that millions of Americans purchase private insurance for the first time and would set up a new marketplace where policies would be available. Failure to obey the requirement would result in penalties of up to $750 per family.

Federal subsidies would be available to millions of lower-income individuals and families to help defray the cost of coverage that would otherwise be out of their reach. The alternative to government- sold health care, a proposal for nonprofit co-ops that would compete with private companies, was judged largely ineffective by budget officials.