Why Does the Health Care Bill Cost a Trillion Dollars?

[Anonymous]

Why is this bill so expensive to the feds?

[Anonymous]

Bumping Medicaid eligibility up from about 45% federal poverty level to about 133% federal poverty level is likely the biggest cost. And providing subsidies to families who earn less than $88,000 is also expensive. There will be associated administrative costs as well.

[jsteele]

This is a trick question. How would you answer, "Why is the moon made of blue cheese"?

The plan does not cost a trillion dollars. Even if you round the expenditure side of the ledger up to get a trillion, you are ignoring the revenue side of the ledger. In addition to new taxes, there are cost savings and offsets. The health reform law is actually the biggest deficit reduction measure to have been enacted in over a decade.

[Anonymous]

jsteele wrote:This is a trick question. How would you answer, "Why is the moon made of blue cheese"?

The plan does not cost a trillion dollars. Even if you round the expenditure side of the ledger up to get a trillion, you are ignoring the revenue side of the ledger. In addition to new taxes, there are cost savings and offsets. The health reform law is actually the biggest deficit reduction measure to have been enacted in over a decade.

Thank you for this answer. I'm liberal and DH is a conservative. I keep spouting out the benefits of this bill, and he keeps asking me why it is so expensive. I have no idea what to tell him. Numbers aren't my thing.