Health Reform Costs to Top $1 Trillion on "Discretionary" Spend
BY LAUREN UZDIENSKI, MAY 13, 2010
President Obama was adamant in the weeks leading up to the healthcare reform vote that costs would not exceed $1 trillion over a decade. The final estimate was around $940 billion, but now the Wall Street Journal's Health Blog reports on an additional $115 billion covering projected administrative costs and other "discretionary" funding measures to be approved by Congress at future dates.
The Journal published a letter from the CBO to Rep. Jerry Lewis (R - CA), wherein the CBO estimates that the cost of implementing the healthcare overhaul will run between $10 billion and $20 billion to agencies such as HHS and the IRS. An additional $105 billion is estimated to be incurred from a number of funding programs, which range from training for healthcare providers to mental health and breast cancer awareness to the Indian Health Improvement Act.
The expense of healthcare reform is unlikely to stop at this $115-$125 billion in extra costs, which brings the total to well over the trillion-dollar ceiling. The CBO was unable to provide an estimate on a third category of costs, defined in the letter as "explicit authorizations for a variety of grant and other program spending" where "legislative language authorizes the appropriation of 'such sums as may be necessary.'"
