Jay Cost | Paul Ryan Spoke the Truth About Obamacare

Here are the facts:

(1) Obamacare cost about $1 trillion dollars over 10 years, according to the Congressional Budget Office. Democrats raised roughly half of that money through new taxes, and the other half was “raised” from cuts in Medicare.

(2) If they had cut Social Security, Democrats would not have been able to apply that revenue to Obamacare because money that comes from Social Security actually belongs to the Social Security Trust Fund. When the federal government uses it for other purposes, it is actually borrowing the money, to be paid back with interest at a later date. The exact same is true of Medicare; the catch is that the rules of CBO budgeting allowed the Democrats to count it as an offset to the new spending. So, Obamacare looked deficit neutral on paper, when in fact half of it was paid for with borrowed money.

(3) The $500 billion in cuts to Medicare do not amount to cuts in benefits to patients, at least nominally. However, government accountants believe that is what effectively will happen. Obamacare imposes efficiency requirements on doctors and hospitals that, over time, will be virtually impossible to maintain. Richard Foster, the government’s chief accountant for Medicare, estimates that 15 percent of all hospitals will fall into the red because of these cuts. Thus, seniors will have the same benefits on paper – but, much like those in the Medicaid program, they will find it difficult to find a doctor or hospital willing to provide the service.

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