An analysis by the Congressional Budget Office (CBO) found Tuesday that the long-term budget plan unveiled that day by Rep. Paul Ryan (R-Wisc.), chairman of the House Budget Committee, would increase the deficit relative to the GDP in the first 10 years, then would reduce it significantly after that. Much of that savings, though, will be because the poor and elderly will paying more for medical costs because of sharp reductions to Medicare and Medicaid benefits.
In addition, the CBO, which in an analysis released Tuesday, found that reduced payments to states for Medicaid would result in higher costs and less coverage for those dependent on the program.
While the analysis does not consider legislative language, which could affect the final results, the CBO did "conduct a long-term analysis" of the plan, which substantially changes both Medicare and Medicaid, essentially ending them as primary payers for care. The analysis also includes an "extended baseline scenario" that is based on current law for comparison.
When AdvisorOne contacted the CBO on Thursday about the analysis, a spokesman said that they wouldn't comment beyond the study itself.