The Latest Senate Health Proposals: Radical and Desperate

Dennis Smith / July 15, 2009

Under increasing pressure to find unconventional ways to pay for the cost of health reform (which was supposed to save money for American families), the Senators sponsoring this legislative nightmare are getting more radical and desperate. While much of the debate has been on the higher-profile issues of cost and coverage, there are many more just as important, though unnoticed skirmishes, over defining the power of the federal government.

Promoting Raw Power. The Senate HELP Committee is using $58 billion in “savings” from the CLASS Act provisions to help pay for the overall cost of its bill. CLASS benefits are cash benefits for enrollees who need help with daily activities. The Congressional Budget Office (CBO) analysis of this provision makes it clear that this new program would add to the deficit in the long term. So, the HELP Committee has included a provision that gives the Secretary of the Department of Health and Human Services the raw power to reduce these benefits and increase enrollees’ premiums for the program. This is an enormous transfer of discretionary power to the Secretary of HHS. Indeed, based on its analysis, CBO not only thinks this is a possibility, CBO also expects such action to occur to keep costs under (more…)