Saturday, July 25, 2009

cutting costs by creating new government agencies? CBO says NO!

By ROBERT PEAR and JEFF ZELENY | Published: July 25, 2009

WASHINGTON — The Congressional Budget Office said Saturday that a new agency proposed by President Obama as a way to cut health costs might save only $2 billion in its first four years, and that there was a high probability that “no savings would be realized.”

. . . The budget office said the proposal did not have enough teeth to guarantee substantial savings. The draft legislation “does not explicitly direct the council to reduce” Medicare spending, “nor does it establish any target for such reductions,” said Douglas W. Elmendorf, director of the budget office.
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