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October 14th, 2011 8:45 pm
Obama’s CLASS-less Budget Deficit

Aside from being unconstitutional, Obamacare is also financially unsustainable.  Of course, everyone except the White House and their drones at HHS acknowledged this when the law passed.  Now, fiscal reality has forced the Obama Administration to scrap a program that was supposed to provide half of the fallacious budget savings from passing Obamacare.  Per Phillip Klein of the DC Examiner:

As Obamacare’s critics noted at the time, Democrats’ deficit reduction claims were based on a series of accounting gimmicks. One of the most obvious was the inclusion of the Community Living Assistance and Support Services Act, a program that was slated to collect five years of premiums before paying out any benefits. Though it was unsustainable over time, on paper it produced surpluses during the Congressional Budget Office’s 10-year budget window.

At the time of final passage, the CBO found that the health care law would reduce deficits by $143 billion, and $70 billion of that was attributable to the CLASS program.

Earlier, I noted a new HHS report recomending against implementing the program. HHS Secretary Kathleen Sebelius has now sent a letter to Congress conceding that there’s no path forward.

Republicans are still rightly moving to formally repeal the CLASS Act from federal law.  Let’s hope they keep pressing for a complete elimination.

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