Thursday
Jan312008
Dr. Peter Orszag Shares Congressional Budget Office's Findings Regarding Health Care Spending With the Senate Budget Committee
Dr. Peter Orszag, Director of the Congressional Budget Office (CBO), testified today before the Senate Budget Committee regarding the crisis generated by increasing health care costs.
In testimony that Chairman Kent Conrad (D-ND) called “sobering,” Dr. Orszag displayed CBO’s projections that health care spending could double by 2035 and become 20% of the economy by 2082 should current policies and practices remain in place. He stated that such high expenditures cannot be allowed to take place.
CBO’s analysis finds that non-Medicare, non-Medicaid health care costs are rising at alarming rates, due in large part to rapid expansion in medical technologies and capabilities; that is, the variety of care continues to increase, expanding costs. Other factors contributing to this increase include increased incidence of obesity, spending per obese person, aging of the population, and industry incentives to provide more health care regardless of quality.
Dr. Orszag highlighted extreme expenditure differences across regions and examples of some hospitals spending up to twice as much as others for the same treatment. He that in his research he had been faced with the ironic question, “How can the best medical care in the world cost twice as much as the best medical care in the world?”
Given the severity of the consequences of inaction, Chairman Kent Conrad (D-ND) and ranking member Judd Gregg (R-NH) shared their intention of going to mark-up on a proposal to resolve this crisis in a bipartisan fashion.
In testimony that Chairman Kent Conrad (D-ND) called “sobering,” Dr. Orszag displayed CBO’s projections that health care spending could double by 2035 and become 20% of the economy by 2082 should current policies and practices remain in place. He stated that such high expenditures cannot be allowed to take place.
CBO’s analysis finds that non-Medicare, non-Medicaid health care costs are rising at alarming rates, due in large part to rapid expansion in medical technologies and capabilities; that is, the variety of care continues to increase, expanding costs. Other factors contributing to this increase include increased incidence of obesity, spending per obese person, aging of the population, and industry incentives to provide more health care regardless of quality.
Dr. Orszag highlighted extreme expenditure differences across regions and examples of some hospitals spending up to twice as much as others for the same treatment. He that in his research he had been faced with the ironic question, “How can the best medical care in the world cost twice as much as the best medical care in the world?”
Given the severity of the consequences of inaction, Chairman Kent Conrad (D-ND) and ranking member Judd Gregg (R-NH) shared their intention of going to mark-up on a proposal to resolve this crisis in a bipartisan fashion.
Coming down hard on illegal immigrants
J. Bonner, president of the National Border Patrol Council, said that the large numbers of illegal immigrants act as a burden on institutions such as courts and overtax border police resources. To put the situation into perspective, Bonner claimed that when a single border patrol agent is taken off the line for three hours to carry out arrests, 25 miles of the border are left wide open. Bonner also noted that illegal immigrants tend to flock to areas which offer sanctuary or ignore the immigrant situation completely.
In addition to the rising crime problem attributed to illegal immigrant gang violence in Prince William County, Corey Stewart, president of the its board of advisers in Virginia, cited problems such as overcrowding in school systems and hospital emergency rooms. When asked about the impact of increasing housing costs if the cheap labor population decreased, Representative Michael C. Burgess (R-Texas) pointed out that the increased housing costs would be a ‘one time thing’ but the costs of education and medical assistance would increase ‘in perpetuity’ if the U.S. ignored the illegal immigrant situation.