Post falsely contrasts deficit-reducing health care reform with Obama's call for deficit reduction

Written by Matt Gertz

Published

The Washington Post reported that, “After spending much of his first year in office pursuing expensive initiatives such as a far-reaching overhaul of the health-care system, Obama has pledged to devote much of the next year to reducing record budget deficits,” falsely suggesting that health care reform would add to the deficit. But according to the Congressional Budget Office (CBO), both the House and Senate health care reform bills would reduce the deficit by over $100 billion through 2019.

From the January 26 Washington Post article:

The announcement comes less than a week after Massachusetts voters sent shock waves through the Democratic establishment by handing Republicans a crucial 41st seat in the Senate, endangering Obama's agenda and fueling GOP attacks on Obama's stewardship of the budget and the economy. After spending much of his first year in office pursuing expensive initiatives such as a far-reaching overhaul of the health-care system, Obama has pledged to devote much of the next year to reducing record budget deficits, which have forced the Treasury Department to increase borrowing, driving the accumulated national debt toward levels not seen since World War II.

But CBO projected both Senate and House health bills would reduce deficit

CBO: Bill yields “a net reduction in federal deficits of $132 billion” over 10 years. On December 19, 2009, CBO reported of the Senate bill incorporating the manager's amendment:

CBO and JCT estimate that the direct spending and revenue effects of enacting the Patient Protection and Affordable Care Act incorporating the manager's amendment would yield a net reduction in federal deficits of $132 billion over the 2010-2019 period.

CBO also estimated on December 20, 2009, that the bill will continue to reduce the deficit beyond the 10-year budget window that ends in 2019 “with a total effect during that decade that is in a broad range between one-quarter percent and one-half percent of GDP.”

CBO also estimated the House bill will result in $138 billion in deficit reduction through 2019. On November 20, 2009, CBO reported of the House health care reform legislation, “CBO and JCT now estimate that the legislation would yield a net reduction in deficits of $138 billion over the 10-year period.”