The Senate Finance Committee’s health reform bill will save the federal government $81 billion over the next 10 years, according to the much-anticipated Congressional Budget Office estimate released this afternoon. CBO found that subsidizing the coverage expansion will cost $518 billion** over a decade, partly offset by taxing high-cost insurance plans ($201 billion), trimming Medicare rates “for most services” ($162 billion), and cutting subsidies to the private insurance companies that cover Medicare patients ($117 billion).
Finance Chairman Max Baucus (D-Mont.) had delayed the panel’s vote on the sweeping health reform bill until the CBO score was issued. No word yet on when that vote will take place.
**Overall, the bill spends $829 billion over the same span on insurance subsidies and tax credits.