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WH: CBO ‘Overstepped’ In Its Analysis

From a cheering CNN:

Peter Orszag with President Obama.

White House: CBO ‘overstepped’ in its analysis

July 26, 2009

WASHINGTON (CNN) — The White House has criticized the Congressional Budget Office’s findings that the Obama administration’s proposal to control Medicare costs would yield a moderate savings of $2 billion over the next decade.

White House Budget Director Peter Orszag said the CBO’s analysis — which it relayed to House Majority Leader Steny Hoyer on Saturday — could feed a perception of the office’s bias toward "exaggerating costs and underestimating savings."

"The point of the proposal … was never to generate savings over the next decade," Orszag said in a letter posted on Saturday.

"Instead the goal is to provide a mechanism for improving quality of care for beneficiaries and reducing costs over the long term."

CBO Director Doug Elmendorf’s letter to Hoyer on Saturday was in response to the Senate Majority Leader’s request for analysis on "possible approaches for giving the President broad authority to make changes in the Medicare program," Elmendorf wrote.

The Obama administration is touting a proposal to give a medical advisory council the power to help decide the scope of coverage that would be eligible for reimbursement under Medicare.

Administration officials say the proposed "Independent Medicare Advisory Council" would both improve health care quality and control costs. Some health care industry groups object to the proposal, saying such a council would not be qualified to make those judgments.

The CBO’s review of the proposal found that "the probability is high that no savings would be realized … but there is also a chance that substantial savings might be realized," Elmendorf wrote.

"Looking beyond the 10-year-budget window, CBO expects that this proposal would generate larger but still modest savings on the same probabilistic basis."

Orszag, a former director of the CBO, pointed out that "it is very rare for CBO to conclude that a specific legislative proposal would generate significant long-term savings so it is noteworthy that, with some modifications, CBO reached such a conclusion with regard to the IMAC (Independent Medicare Advisory Council concept."

But he also criticized Elmendorf’s findings.

"As a former CBO director, I can attest that CBO is sometimes accused of a bias toward exaggerating costs and underestimating savings. Unfortunately, parts of today’s analysis from CBO could feed that perception," Orszag said.

"In providing a quantitative estimate of long-term effects without any analytical basis for doing so, CBO seems to have overstepped." …

It’s hard to puzzle it out from this article, but this is an extension of Obama’s efforts to wrest control of Medicare/Medicaid reimbursements away from Congress so that he can call the shots.

And, despite what Mr. Orszag now claims, that was and is touted as a way to bring about tremendous savings.

Congress asked the CBO’s opinion, since they want to keep this power for themselves.

Needless to say, it should be nigh unto impossible for the CBO to predict whether the Obama people would raise or lower the reimbursement levels.

So naturally they tried to have it both ways:

The CBO’s review of the proposal found that "the probability is high that no savings would be realized … but there is also a chance that substantial savings might be realized," Elmendorf wrote.

And still the White House slammed them.

This article was posted by Steve on Sunday, July 26th, 2009. Comments are currently closed.

16 Responses to “WH: CBO ‘Overstepped’ In Its Analysis”

  1. Liberals Demise says:

    Any chance these power hungry wolves will eat one another as the struggle for the “KINGDOM” continues?

    We are in for some DEEP dodo folks!
    Please God ………Help us?

  2. MinnesotaRush says:

    More of the same old, same old – just MUCH worse!

    Smoke and mirrors – smoke and mirrors. If this smoke don’t work – use this. If that mirror don’t work – use this.

    Truth is, they’re (still) like a bunch of little kids playing office. They haven’t got a clue! How long ago did good ol’ Joe say that they just guessed wrong …

    Common sense isn’t altogether that common. – Mark Twain

  3. proreason says:

    When has a government program ever saved money or came in under budget?

    Tricked ya !!!

    You thought I meant the answer to be “never”, but in fact there are plenty of examples where governments have saved money.

    The most notable is the USSR.

    But in the USA,……Never.

  4. Confucius says:

    Peter Orszag used to be director of the CBO.

    How funny is this?

  5. Gila Monster says:

    “The CBO’s review of the proposal found that “the probability is high that no savings would be realized … but there is also a chance that substantial savings might be realized,” Elmendorf wrote.”

    This statement explicitly demonstrates what is seriously wrong with our federal government. They have access to some of the greatest minds, databases, computers, think tanks, etc, in this country but the morons come up with the above zinger. Heaven help us!!

    How about this, “there is a high probability that the sun will come up tomorrow but there is also a chance that somewhere in the US, clouds will obscure your view of it”.
    Hey! I should work for da gubbermint!

  6. Laree says:

    It was called “Crowded Out”

    Hawaii’s experiment with universal health care, failed experiment. First in the nation to attempt universal health care. To cover 3,500 children but parents dropped their private coverage and took advantage of taxpayer funded health care. It ended after 7 months.


  7. cookiecool says:

    Smoke and mirrors

  8. platypus says:

    Whoa! My first thought upon seeing that picture was how in the he!! did Colbert get face time with Duh Won?

    Then I see that it’s Peter Orszag. But I wonder – has anybody seen Colbert and Orszag in the same room at the same time?

  9. wirenut says:

    I never really felt it was about the money,(savings). To me its all about control. Nanny this and nanny that. Libs have no qualms about killing the unborn, with this bill they can kill with abandon, 60 and above. If we don’t fit someones need list, deny care and they just go away. Its just that simple. Gun owners, Denied! Meat eaters, Denied! Rightwingers, Denied! See where this could go in a left brain world?

  10. erasure says:

    Obama is ridiculous. First someone asks why he’s racing to get this done and he says because our economy depends on it, meanwhile it won’t be up and running until 2013.

    I want to know where he gets off demanding a healthcare bill, that people will have no say in until it finds it’s way to obie’s desk, which he’ll sign without understanding it (just like the stimulus and just like that half-ass cap and trade bill).

    I am so tired of his lies about how this will control healthcare costs when there’s no evidence to suggest it will. If it’s able to be done, why won’t he show us?

    I’m a moderate democrat but i did not vote for this tool for a reason, he has no idea what he is doing and he does not care about the american people. all he cares about is himself or he’d do this right. Instead he’s flying off to baseball games and inviting his race-card playing friend over to the white house for a beer. This is getting ridiculous.

    • proreason says:

      “I am so tired of his lies ”

      Since everything he says is a lie, the only way to avoid them is to not listen.

      As a moderate democrat, you probably want this country to survive without a wholesale slaughter of our traditions and power.

      Talk to your friends.

      Nothing is more urgent.

      If he gets the HealthScare through in any form, American life as you know will end, and the slide towards becoming a banana republic will be in full sway…..and probably irreversable.

  11. wirenut says:

    Welcome to thug-o-cratic obama style. First stop on this voyage is to Payback Island. Off to your left, Errr, port is Union Key, no libtard skipper leaves without his keys. Haa haa! We’ll set sail for Point-No-Point and then head to the Cape of Idontknow. Demilitarized Island is next, with its famous illegal alien beaches. Take your time and spread your wealth with those that just show up. Too much to keep up with? There’s more on this voyage folks, and more than you bargained for. Try our, “your too old or haven’t been born yet” Spa. It may look like a gas chamber but you’ll never leave. Go swimming in conservative infested waters, Yikes! Try our Climb the Tax Wall or the Ted Kennedy Drunk&Dunk Tank. This Captain wants to go Titanic. See you on the next voyage!

  12. canary says:

    He has 3 and half years to bankrupt America, and allow the terrorists to spread. Just like a King in the palace, he has all of DC with jobs working around the castle.

  13. Rusty Shackleford says:

    Looking at that photo, for what must have been the 20th time, it finally hit me why he has so many apples there. He’s cypherin y’all!

    Remember… when you were doing your “take aways”?

    If Johnny has five apples and Jill takes away 3 apples, how many apples does Johnny have?”

    Only problem is, that the WH staff has been told to NEVER let the apple basket be anything less than full…so…when Barry, the wise takes out some apples to do some cypherin’ a well-intended staff member is there to re-stock the basket and you have this:

    Obama: So, you’re saying the new healthcare plan would cost a bazillion, trillion apples…which, for simplicity’s sake, I’ll call, 7 apples..and I take them out…..from this basket of 35 apples….

    (he turns to put the apples behind the sofa and a staffer replenishes the apples)

    ….I still have 1,2,3, 4……..35 apples. Wow, this finance cypherin’ shit is outta-sight.

    CBO officer: But…..Mr President……

    Obama: OK…let’s do another one….like….cutting military spending…

    (He reaches behind the sofa to get the apples)

    …so now we have…..1,2, 3, 4, 5,

    (time passes)

    …WOW…..lookit that….Forty-Two apples….holy cow….did you SEE that? It’s like, free money or something….like when I refinanced my house….I mean…the check just appeared in the mailbox and me and Mitch….we went out and had us a time!

    CBO officer: But, Mr President….your staffers….

    Obama: Yeah…aint’ they cool? They flit and fly up all over da house, numsayin’? I mean they be JACKIN’…

    CBO officer: But….the budget….I think we should use something else to illustrate where the money goes….

    Obama: I know…I have to agree….I know, how about oranges?

    (CBO officer puts his head in his hands)

    Obama: Wait, are you crying? Oh my god….I don’t believe it! Hey…Mitch….come down here, I made this guy cry…..look!

    • Liberals Demise says:

      Can’t wait for Barry to summon Jethro from the Dept. of Education so he can explain multiplication “Guzintas” system.
      For example 2 guzinta 4= two times!
      3 guzinta 9= three times …………. and so on!
      That 6th grade education is paying off in Barrys’ cabinet!

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