Reducing health care costs could play a major role in reducing defense costs as well as overall federal expenditures.
Budget analysts at the Congressional Budget Office (CBO) discuss ways to control the federal budget deficit by reducing health care costs and other benefits costs in a wide-ranging report on deficit-cutting options.
The analysts also list many ideas for increasing federal revenue.
“The inclusion or exclusion of a particular policy change does not represent an endorsement or rejection by CBO,” CBO Director Douglas Elmendorf says in a preface to the report. “In keeping with the CBO’s mandate to provide objective, impartial analysis, this report makes no recommendations.”
The exclusions for employers’ contributions for health care, health insurance and long term care insurance, and the net exclusion for pension contributions and earnings, will cost the federal government a total of about $1.3 trillion in lost revenue from federal fiscal year 2010 to fiscal year 2014, analysts note in a table, citing figures from the congressional Joint Committee on Taxation.
Large sections of the report cover options for reducing federal health care outlays.