Late last year, the Obama administration was forced to abandon one of the gimmicks it used to make it appear that Obamacare would reduce the deficit, the CLASS Act. Scheduled to reduce the debt by $70 billion over ten years, the CLASS Act’s failure alone erased more than half of Obamacare’s claimed $120 billion in total deficit reduction.
Yesterday, the Congressional Budget Office (CBO) released another crushing blow to Obamacare’s deficit reduction claims, posting a study showing that pilot programs designed to reduce Medicare spending either had no effect, or actually increased Medicare spending. Obamacare had counted on over $500 billion in Medicare savings. Here is how Obama’s Office of Management and Budget Director Peter Orszag described their importance at the time:
