Washington Has an Expensive Habit of Underestimating the Real Cost of Government Program

Washington Has an Expensive Habit of Underestimating the Real Cost of Government Program

MARCH 18, 2010

At today's White House Press Briefing, Press Secretary Robert Gibbs implied that American taxpayers might see more "savings" in the Democrat health care bill than the Congressional Budget Office projected:

"...in most cases the CBO tends to underfactor, quite frankly, the savings that you generally see on the back end of these things.." ("Briefing by White House Press Secretary Robert Gibbs, 3/18/2010)

But the history of Washington score-keepers shows the real cost is often greater and the taxpayers have been forced to pick up the bill:

  •  In 1965, it was estimated that by 1990 Medicare Part A would cost the federal government $9.1 billion. In reality, 1990 spending was $67 billion - seven times greater.
  • Created in 1965, Medicare Part B was supposed to be funded through a $3 premium and $500 million in federal revenue. In 2008, Medicare Part B required $146.8 billion in government revenue - a 4300 percent increase.