That's the results of a new study by a member of the board that oversees Medicare financing.
The significance isn't just that Obamacare will add $34 billion to the deficit every year. The problem is that Obama and the Democrats have been claiming that Obamacare will actually reduce the deficit by around $500 billion over the same period.
That's an $840 billion dollar error. Ooops.
President Obama's landmark health-care initiative, long touted as a means to control costs, will actually add more than $340 billion to the nation's budget woes over the next decade, according to a new study by a Republican member of the board that oversees Medicare financing.
The study is set to be released Tuesday by Charles Blahous, a conservative policy analyst whom Obama approved in 2010 as the GOP trustee for Medicare and Social Security. His analysis challenges the conventional wisdom that the health-care law, which calls for an expensive expansion of coverage for the uninsured beginning in 2014, will nonetheless reduce deficits by raising taxes and cutting payments to Medicare providers.
The 2010 law does generate both savings and revenue. But much of that money will flow into the Medicare hospitalization trust fund -- and, under law, the money must be used to pay years of additional benefits to those who are already insured. That means those savings would not be available to pay for expanding coverage for the uninsured.
"Does the health-care act worsen the deficit? The answer, I think, is clearly that it does," Blahous, a senior research fellow at George Mason University's Mercatus Center, said in an 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 the new subsidies together create more spending than existed under prior law."
We all know that Congress, the White House, and the bureacracy is math challenged. They keep trying to tell us that 1+1=3. The people know better which is one of the reasons Obamacare is hugely unpopular.
This won't help the administration's case.