Meanwhile, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) has released a preliminary analysis of H.R. 3962, as introduced. H.R. 3962 would establish a mandate for most individuals to obtain health insurance; set up insurance "exchanges" where some individuals and families could receive federal subsidies to substantially reduce the cost of purchasing coverage; expand eligibility for Medicaid; reduce the growth of Medicare's payment rates for most services; impose an income tax surcharge on high-income individuals; and other changes to the tax code, Medicaid and Medicare.

According to CBO and JCT's assessment, enacting H.R. 3962 would result in a net reduction in federal budget deficits of $104 billion over the 2010-2019 period. In the next decade, the result would a slight reduction in federal budget deficits. The estimate has a projected net cost of $894 billion over 10 years for the proposed expansions in insurance coverage. That net figure includes the gross total of $1,055 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. The costs would be partly offset by $167 billion in penalty collections from individuals and employers, spending changes, receipts resulting from the income tax surcharge on high-income individuals and other provisions.


GOP Leader Boehner's remarks can be accessed at: http://gopleader.gov/News/DocumentSingle.aspx?DocumentID=152439

Rep. Slaughter's remarks and the amendments to the bill can be accessed at:
http://rules.house.gov/PRArticle.aspx?NewsID=4486

The Congressional Budget Office's letter can be accessed at:
http://www.cbo.gov/ftpdocs/106xx/doc10688/hr3962Rangel.pdf

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