President Obama’s healthcare reform initiative will add $340 billion to the U.S. deficit, according to a new study. The Washington Post reports:
The study is set to be released Tuesday by Charles Blahous, a conservative policy analyst whom Obama approved in 2010 as the GOP trustee for Medicare and Social Security. …
“Does the health-care act worsen the deficit? The answer, I think, is clearly that it does,” Blahous, a senior research fellow at George Mason University’s Mercatus Center, said in an interview. …
In arriving at his deficit figure of $340 billion, Blahous updates the numbers through 2021 and subtracts savings that would have come from another provision of the law: the CLASS Act, a long-term-care program that was supposed to have generated as much as $86 billion in new revenue through 2021. The administration acknowledged last year that the CLASS Act is unworkable and suspended efforts to implement it.
According to Reuters:
Blahous, a former economic adviser in the George W. Bush White House, said in his research that the law is expected to boost net federal spending by more than $1.15 trillion and add between $340 billion and $530 billion to deficits between 2012-21.
“Relative to previous law, the (healthcare law) both exacerbates projected federal deficits and increases an already unsustainable federal commitment to health care spending,” he concluded.