This week Sen. Harry Reid (D-NV) announced a new Senate healthcare bill which combines elements of bills marked up by two separate committees. Reid’s bill includes the controversial government-run, public option insurance. The bill would allow states to “opt-out” of the public option but is unclear whether it would actually be feasible for any state to do so. Contained in the bill are 15 new tax increases totaling nearly $500 billion. Reid claims that the bill would reduce the deficit by $127 billion but this really just means that the legislation takes in more taxes than it needs to run the new spending programs created. Just like the House bill, Reid’s legislation contains hundreds of billions of dollars in cuts to Medicare that would reduce the quality of care (see below). The Republican staff of the Senate Budget Committee estimate that, minus all the gimmicks contained in the bill, it would actually cost over $2.5 trillion. The Senate will have a motion to begin debating the bill this weekend.

Government Report Shows True Cost of Pelosi Healthcare Bill

A report from the Centers for Medicare and Medicaid Services shows that Speaker Pelosi’s recently passed healthcare legislation would increase medical costs. Over the first ten years, total health expenditures would increase by $289 billion. The report notes that most of the provisions designed to reduce costs would have only a small impact. But since so many of the provisions of the bill will actually increase costs, American families will not save money should the bill become law. Additionally, the report states that $571 billion in cuts to Medicare will adversely impact service. Democratic leadership is trying to claim that these cuts will have no affect on the quality of care, but the report clearly states that doctors and hospitals might end their participation in Medicare because of low reimbursement rates. Clearly, fewer doctors accepting Medicare means longer lines and reduced service.

Legislation to Audit the Federal Reserve Passed by House Committee

Yesterday, the House Committee on Financial Services approved legislation sponsored by Rep. Ron Paul (R-TX) that would direct the Government Accountability Office (GAO) to undertake an audit of the Federal Reserve.  I am a cosponsor of this legislation along with 312 other Members of the House. This bill would give the GAO the ability to audit the Federal Reserve’s balance sheet, credit facilities, and securities purchase programs. Many Members of Congress are concerned that the Federal Reserve has not provided enough information to account for the billions of bailout dollars provided to banks and financial firms.

Stimulus Jobs

This week saw more bad news for the administration’s claim that the stimulus act has “created and saved” hundreds of thousands of jobs. Recovery.gov, the website that reports stimulus dollars spent and jobs created, listed non-existent Congressional districts as receiving money. Additionally, press investigations revealed that many employers who received stimulus money has grossly overstated the number of jobs “saved.” In one case, the purchase of a single lawnmower supposedly led to the creation of 50 jobs. Some reports indicate that up to 20 percent of all claims are not verifiable.

Quote of the Week

“Credibility counts in government and stupid mistakes like this undermine it. We’ve got too many serious problems in this country to let that happen.”
--Rep. David Obey (D-WI), on the faulty jobs numbers at Recovery.gov.