Senate Finance Committee Health Care Reform Proposal Expands Coverage and May Lower Budget Deficits But Total Health Care Costs Would Rise and Financing Is Risky

A study commissioned by the Peter G. Peterson Foundation on S. 1796, America’s Healthy Future Act of 2009 (the “Act”) confirms the Congressional Budget Office (CBO) analysis that the bill, as passed by the Senate Finance Committee, could result in slightly lower deficits if it is implemented as intended and remains unchanged. The study, conducted by The Lewin Group, mirrors the CBO’s findings that new revenues and savings under the bill, would exceed new spending. However, while coverage gains would be more immediate, the pain of paying for new coverage would build over time, raising questions about whether those financing measures would be fully implemented and left unchanged.