Let’s review the past two days.
On Sunday, the Democratic health care restructuring proponents were trumpeting a report by an MIT economist claiming, based on a prior CBO scoring of Harry Reid’s bill, that private premiums in the non-group market would drop $200-$500. The White House, among others, claimed this analysis reflected a really, really important point in favor of Reid’s bill. I said the analysis was nonsense.
On Monday, the CBO released another report, contradicting to the MIT economist, and estimating that private premiums in the non-group market would rise significantly. The CBO report indicated that the only way Reid’s plan would lower premiums was if the government gave heavy subsidies. Nonetheless, the White House touted this CBO report as showing that Reid’s plan saves us money, based on the lower costs after subsidie, as if the government giving people money to buy policies represented a lower cost of the premiums.
This is Tuesday, so supporters of the Reid bill will claim that the bill will save us money. Because it’s Tuesday. That’s all the reason they need.