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Even the most ardent deficit hawk among House Democratic leaders says the cost of overhauling the nation’s healthcare system will be heaped on top of the snowballing federal debt, at least initially.
House Majority Leader Steny Hoyer (D-Md.) said Tuesday that in the long run, an expanded and overhauled healthcare solution will stop adding to the deficit. But he acknowledged that won’t be possible at first.
Hoyer works closely with the fiscally conservative Blue Dog Democrats, who adhere closely to the “pay-as-you-go” or “pay-go” budget rules, which require spending increases to be offset with cuts or tax increases to keep from adding to the deficit.
“Our objective is going to be [to] have a pay-go-compliant policy over the longer term,” Hoyer said in an appearance at the National Press Club. “That may not be possible in the short term, given where we are.”
Rep. Pete Stark (D-Calif.), who chairs the Ways and Means Health Subcommittee, said earlier this month that passing healthcare reform and averting a massive cut in Medicare doctor payments cannot realistically be done unless Congress waives pay-go. Stark said that waiving pay-go for just the doctor payments would add $200 billion to $300 billion to the deficit.
Hoyer’s comments are notable because he is considered the chief advocate of the Blue Dogs and the pay-go policy in the House Democratic leadership.
Hoyer said that by tackling many of the problems and inefficiencies in the healthcare system, costs could be reduced to limit the impact on the deficit.
But Hoyer said policymakers need to look comprehensively at the issues of both healthcare and entitlement reform.
“When it comes to healthcare, we can no longer think of entitlement reform and expanded access as two separate issues,” Hoyer said.
He also said he doesn’t expect Democrats to try to reinstate the moratorium on offshore drilling that they begrudgingly allowed to expire at the end of September amid Republican pressure and record-high gasoline prices. Yet Hoyer said Democrats are likely to look at limiting the now-nearly unlimited scope of drilling possibilities.
“I don’t think there is any intent at this point in time — there are no — nobody is suggesting that we return to the same position we were in on Sept. 28 or 27 or 26,” Hoyer said. “But I think there will be real discussion on the parameters in which drilling will be pursued.” |