Two of the main goals of House Republicans in Congress are repealing the health care bill and cutting the deficit. Today the Congressional Budget Office tossed a grenade into the plan when it issued a report suggesting repealing the health care bill will increase the deficit.
According to the CBO blog:
As a result of changes in direct spending and revenues, CBO expects that enacting H.R. 2 would probably increase federal budget deficits over the 2012-2019 period by a total of roughly $145 billion (on the basis of the original estimate), plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. Adding two more years (through 2021) brings the projected increase in deficits to something in the vicinity of $230 billion, plus or minus the effects of technical and economic changes.
The Congressional Budget Office acknowledged that the repeal of the health care law would allow health insurance premiums to drop slightly, but that’s only a technical savings. Reality is much different.
Although premiums in the individual market would be lower, on average, under H.R. 2 than under current law, many people would end up paying more for health insurance–because under current law, the majority of enrollees purchasing coverage in that market would receive subsidies via the insurance exchanges, and H.R. 2 would eliminate those subsidies.
Republican House Majority Leader Eric Cantor dismissed the CBO’s assessment. “I think what we do know is the health care bill costs over $1 trillion,” Cantor said. “And we know it was full of budget gimmickry. And it spends money we don’t have in this country.”
Pick your poison.