"Dem Source: CBO Says Health Bill Cuts Deficit, Costs $940 Billion"

TPMDC:

They're here! They're here!

A Democratic source provides TPM with the CBO's final top-line numbers on the health care reform bill--the cost-estimate of the Senate health care bill as amended by a soon-to-be-released reconciliation bill. The findings, as expected, keep the bill in line with the Senate bill's stand alone score:

The bill would reduce the deficit by $130 billion in the first ten years, and potentially by $1.2 trillion in the second ten years (though CBO always warns that projections into the second decade are extremely unpredictable).

According to the source, CBO finds that the bill reduces annual growth in Medicare expenditures by 1.4 percentage points per year, extending Medicare's solvency by at least 9 years.

And, in a small, but significant improvement over the Senate bill, the combined package will expand health insurance coverage to 32 million Americans, as opposed to the Senate bill's 31 million.

The one difference Republicans will point to? The bill's about $100 billion more expensive than its predecessor. The price tag is fully covered, but will cost $940 billion over a decade. That's likely a reflection of changes to the bill, such as enhanced subsidies and closing the Medicare Part D donut hole. But it does exceed President Obama's arbitrary price of "around $900 billion", which he issued back in September, and which Congress treated as a hard ceiling.

Howie P.S.: Greg Sargent has some instant analysis, including this:

“biggest deficit reduction measure in 25 years, since the 1993 Clinton budget.”

CBO: "Senate-passed health care bill would cut deficit"

AP:

Congressional budget referees say Senate legislation that's now the foundation for President Barack Obama's health care plan would cut the federal deficit by $118 billion over 10 years.

The Congressional Budget Office says the $875 billion, 10-year plan would provide coverage to 31 million people who'd otherwise be uninsured. And it says the cost would be more than offset in savings from changes in Medicare and other programs.

Obama's plan would build on the legislation passed by the Senate on Christmas Eve, by expanding subsidies for health insurance premiums, closing the Medicare prescription coverage gap, and making scores of other changes.

No estimates are yet available for Obama's latest proposal, but Democratic leaders want to keep the 10-year cost at around $950 billion.