Health Bill Could Cut Deficits by $118 billion, Say Hill Budget Pros

The budget experts on Capitol Hill say the Senate-passed health care bill would reduce federal budget deficits by $118 billion over a 10-year period -- not quite as much as they figured in an earlier assessment.

The nonpartisan Congressional Budget Office said its estimate today does not differ "substantially" from a slightly higher savings projection in December. It said the estimate folds in amendments adopted before the Dec. 24 passage of the bill and also includes assumptions about when a new law would take effect. The CBO did not consider changes proposed by President Obama that have yet to be added.

The lower projection -- down from $132 billion -- was unwelcome news for senators concerned about the expense of overhauling health care. Still, CBO cautioned that its estimate for deficit reduction was "imprecise," due to uncertainty over cost factors and the final shape of the package. The overall cost of the measure -- again over a 10-year time frame -- stands at $875 billion.

"CBO has not completed an estimate of all of the discretionary costs that would be associated with the legislation," the budget office said in a statement. "Those costs would depend on future appropriations and are not included in today's estimate of the direct spending and revenue effects of the bill."

Both sides in the health reform debate have used CBO numbers to make arguments for and against the legislation.