Rep. Blackburn Falsely Stated Democratic Bill Would Cost $2.4 Trillion

November 07, 2009 5:02 pm ET

During a November 7, 2009 interview on MSNBC, Rep. Marsha Blackburn (R-TN) claimed the Democratic proposal to expand access to affordable health care coverage would cost $2.4 trillion.  In reality, the bill would cost less than $1.1 trillion and cut $109 billion off the deficit.

Rep. Blackburn Falsely Stated Democratic Bill Would Cost $2.4 Trillion

Rep. Blackburn:

We are for dealing with these insurance market reforms, insurance market accountability and doing it in a way that doesn't break the bank.  Their bill is a $2.4 trillion bill according to the Congressional Budget Office.

The Democratic Bill Slashes The Deficit By $109 Billion

CBO: Democratic Bill Would Cost $1 Trillion, Cut Deficit By $109 Billion. According to the Congressional Budget Office's analysis of the Democratic health care plan:

Reflecting the change noted above, CBO and the staff of JCT now estimate that, on balance, the direct spending and revenue effects of enacting H.R. 3962, incorporating the manager's amendment, would yield a net reduction in federal budget deficits of $109 billion over the 2010-2019 period.

[...]

The estimate includes a projected net cost of $891 billion over 10 years for the proposed expansions in insurance coverage. That net cost itself reflects a gross total of $1,052 billion in subsidies provided through the exchanges (and related spending), increased net outlays for Medicaid and the Children's Health Insurance Program (CHIP), and tax credits for small employers; those costs are partly offset by $167 billion in collections of penalties paid by individuals and employers. [CBO, 11/6/09; emphasis added]

The Democratic Bill "Covers 12 Times As Many People And Saves $36 Billion More Than The Republican Plan."  The Washington Post's Ezra Klein wrote: "According to CBO, the GOP's alternative will shave $68 billion off the deficit in the next 10 years. The Democrats, CBO says, will slice $104 billion off the deficit. The Democratic bill, in other words, covers 12 times as many people and saves $36 billion more than the Republican plan." [Washington Post, 11/5/09]

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