Research Briefing

Last Year, Obama Set Aside Money For His Government Run Health Care Experiment; Where Is It This Year?

LAST YEAR, OBAMA’S BUDGET CREATED “HEALTH RESERVE FUND” AS PART OF HIS GOVERNMENT-RUN HEALTH CARE EXPERIMENT

OBAMA: “My Budget Included An Historic Down Payment On Reform, And We’ll Work With Congress To Fully Cover The Costs Through Rigorous Spending Reductions And Appropriate Additional Revenues.” (President Barack Obama, Weekly Address, The White House, 6/6/09)

Obama’s FY2010 Budget Had $634 Billion Reserve Fund For Health Care. “President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The ‘reserve fund’ in the budget proposal being released today is Obama’s attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government.” (Ceci Connolly, “Obama Proposes $634 Billion Fund For Health Care,” The Washington Post, 2/26/09)

BUT OBAMA’S “DOWN PAYMENT” IS NOWHERE TO BE FOUND THIS YEAR

Obama’s Budget This Year Doesn’t Include “Down Payment” On Government Takeover Of Health Care. “Last year President Obama used his budget to lay the groundwork for comprehensive health-care reform, proposing a 10-year, $634 billion reserve fund as a ‘down payment’ on universal coverage. This year’s blueprint does not include that money, though administration sources said the overall federal budget assumes a bill will be enacted and result in deficit reduction of $150 billion over the next decade.” (Ceci Connolly, “Obama 2011 Budget Request: Department Of Health And Human Services,” The Washington Post, 2/1/10)

THAT’S BECAUSE OBAMA NOW CLAIMS HIS HEALTH CARE BILL WILL SAVE $150 BILLION, WHEN IN FACT IT WILL CREATE $221 BILLION DEFICIT

“[T]he Administration Is Counting On $150 Billion In Deficit Reduction From A Health Care Reform Bill That Is -- For Now -- Stalled In Congress With No Clear Path Forward.” (Jake Tapper and Sunlen Miller, “President’s Budget Assumes $150 Billion In Savings From Health Care Reform,” ABC News, 2/1/10)

But Obama Hiding “Doc Fix” Provision That Will Cost $371 Billion, Which Means His Government-Run Health Care Experiment Will Create $221 Billion Deficit. (White House Office Of Management And Budget, President's FY2011 Budget, 2/1/10)