*Exposing the Obamacare Shell
Game<http://paracom.paramountcommunication.com/ct/3510266:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>

*In his primetime health care
address<http://paracom.paramountcommunication.com/ct/3510267:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>before
a Joint Session of Congress, President Barack Obama promised the
American people: “I will not sign a plan that adds one dime to our deficits
– either now or in the future. Period.” But it is hard work adding $1
trillion in government spending while claiming with a straight face that you
are not adding to the deficit. Enter White House Chief of Staff Rahm Emanuel
who has just the
solution<http://paracom.paramountcommunication.com/ct/3510268:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>:
just strip out $247 billion of the spending in the bill, pass it separately,
and voila … your job just got one-fourth easier.

The specific issue at hand is the centrally planned price control
regime<http://paracom.paramountcommunication.com/ct/3510274:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>the
federal government uses to reimburse doctor’s who participate in
Medicare. Medicare reimburses doctors and other medical professionals for
their services according to a congressionally created fee schedule that is
annually adjusted by the Sustainable Growth Rate (SGR) formula. The idea is
relatively simple: If Medicare spending grows faster than our overall
economy (which is almost always the case), then payments to Medicare
providers are supposed to be reduced proportionately to keep expenditures in
line over a period of time.

Problem is every year Congress–under both Democratic and Republican
leadership–routinely blocks the cuts from going into effect. Subsequently,
the necessary cumulative cut in Medicare payments grows bigger. Without a
change to current law, payments to physicians would be reduced by 21.5% as
of January 1, 2010. The Senate Finance Committee bill addresses this problem
by raising the reimbursement rate for one year and then pretending that
Congress will allow massive
cuts<http://paracom.paramountcommunication.com/ct/3510275:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>for
the next 9 years. House Majority Leader Steny Hoyer (D-MD) rightfully
called the Senate Finance Committee proposal a
façade<http://paracom.paramountcommunication.com/ct/3510276:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>
.

The Obama administration’s proposed solution, however, is no more honest.
Instead of pretending Congress will cut doctor’s Medicare reimbursement
rates, the Senate wants to pretend the doc fix isn’t part of health care
reform. So Majority Leader Harry Reid’s (D-NV)
dissembled<http://paracom.paramountcommunication.com/ct/3510277:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>Friday:
“Correcting the Medicare doctors’ payment discrepancy is a budgetary
problem — health insurance reform tackles a serious regulatory problem.
That’s why we need to fix the Medicare doctors’ payments first, outside of
health reform.” The Washington Post editorial board responded
<http://paracom.paramountcommunication.com/ct/3510277:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>this
morning:


Mr. Reid’s attempt to distinguish the budgetary and regulatory issues is
nonsensical. The health reform measure includes all sorts of changes in the
ways that various providers are compensated. True, the problem with
inadequate Medicare payments is something of a preexisting condition to
health reform, but that does not make it unrelated. The so-called doc fix is
being rushed to the Senate floor this week in advance of health reform not
because it has nothing to do with health reform but because it has
everything to do with it.
…
A president who says that he is serious about dealing with the dire fiscal
picture cannot credibly begin by charging this one to the national credit
card, with no concern for the later generations who will have to pay the
bill.


And it is the later generations that should be particularly concerned with
this shell game. That $247 billion price tag is just the ten year cost of
the doc fix. Looking over the long-term, the 75-year cost to our national
debt is another $3 trillion. This past Friday the Obama administration
admitted that the federal budget deficit for the fiscal year that just ended
was $1.4 trillion, nearly a trillion dollars greater than the year before
and the largest shortfall relative to the size of the economy since
1945.<http://paracom.paramountcommunication.com/ct/3510278:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>Just
like Obamacare’s
massive expansion of the Medicaid
rolls<http://paracom.paramountcommunication.com/ct/3510279:5015378821:m:1:147140772:265B9BF0DC531C20A29B8287B42070B0>,
the doc fix shell game exposes the fact that Obamacare is just a
continuation of the current budget busting health care system, not real
reform.

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