Reply #9: Disgusted as well, another thing we continue to hear is how the bills... [View All]

[slipslidingaway]

will reduce the deficit, one reason is because of the new long term care plan in the proposed legislation. So we'll collect fees from people for long term care insurance that will not be needed right away and use those payments to fund HC reform.

:shrug:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=433&topic_id=7926&mesg_id=8540


Generating revenue to cover the plan's cost over the 10 year period...bottom of page 7 in the CBO report. While the program itself sounds good, notice how this new piece reduces the deficit by 72 billion in the 10 year window.

Nice way to reduce the cost for Now.

The headline news was that this bill would reduce the deficit by 104 billion...

BREAKING: CBO Releases Numbers On House Health Care Bill : Reduce Deficit by $104 Billion

...so where did that reduction come from, it appears a large portion (72 billion) is due to this new long term care insurance, aka CLASS.

While that is something to celebrate, the plan would have people paying in over the 10 year budget window for something they will need in the future, naturally this will be all gains until people start drawing from the fund. For reference this is shown on page 26, Table 3 of the CBO report.

It reminded me of the SS Trust Fund that was pre-financed and helped to reduce the deficits, especially during the Clinton and Bush years...