December 23, 2009
Funny Gub'mint Account -- Mai Non!
The key point is that the savings to the HI trust fund under the PPACA would be received by the government only once, so they cannot be set aside to pay for future Medicare spending and, at the same time, pay for current spending on other parts of the legislation or on other programs. Trust fund accounting shows the magnitude of the savings within the trust fund, and those savings indeed improve the solvency of that fund; however, that accounting ignores the burden that would be faced by the rest of the government later in redeeming the bonds held by the trust fund.
One tires of saying it but: if they did this at Enron, there'd be jail time... Health Care Posted by John Kranz at December 23, 2009 12:25 PM