When ObamaCare passed Barack Obama said it would be the biggest cut the deficit by over $1.3 trillion over the next 20 years. However, new analysis by Charles Blahous, a policy analyst Obama appointed as the GOP trustee for Medicare and Social Security in 2010, shows it will actually add $340 billion to the deficit in the next decade.
Blahous contends that the expansion of the Medicare hospitalization trust fund will provide additional benefits to the insured while shortchanging the uninsured.
“Does the health care act worsen the deficit? The answer, I think, is clearly that it does,” Blahous, who also serves as a senior research fellow at George Mason University’s Mercatus Center, said in a recent interview. “If one asserts that this law extends the solvency of Medicare, then one is affirming that this law adds to the deficit. Because the expansion of the Medicare trust fund and the creation of new subsidies create more spending than existed under prior law.”
The Obama administration, however, dismissed the study suggesting it departs from established bipartisan rules for scoring legislation.
“I never felt would reduce the deficit, that was a particular accounting issue that I understood early on,” former Congressional Budget Office Director Douglas Holtz-Eakin, who serves as president of the American Action Forum, told Red Alert Politics. “I wrote about it a couple years. It’s incredible to have someone like Chuck Blahous make the same point.
“The president has raised the deficit from the day he got out and gave his speech in the Rose Garden.”
The Obama administration has been in denial about ObamaCare’s deficit impact from Day One, Holtz-Eakin said.
“You can’t both spend money on Medicare and on uninsured. You will need to spend more to cover both or someone gets the short end of the stick,” Holtz-Eakin said. “It won’t help those it si supposedly supposed to help because we don’t have enough money.”
But Holtz-Eakin anticipates all projections will change after the Supreme Court makes its ruling.