Washington, DC – Congressman Brett Guthrie (KY-02) questioned Congressional Budget Office (CBO) Director Doug Elmendorf Wednesday, March 30, 2011, during the Energy and Commerce Health Subcommittee's hearing on the true cost of the health care law and its effects on the budget and jobs.
Washington, DC – Congressman Brett Guthrie (KY-02) questioned Congressional Budget Office (CBO) Director Doug Elmendorf Wednesday, March 30, 2011, during the Energy and Commerce Health Subcommittee’s hearing on the true cost of the health care law and its effects on the budget and jobs.
During a March 9, 2011, hearing before the Energy and Commerce Committee, Health and Human Services (HHS) Secretary Kathleen Sebelius confirmed that the Department of Health and Human Services has unlimited authority to spend money to encourage enrollment in state-based exchanges. This is an unprecedented authorization by Congress to give a cabinet secretary a direct line to the federal treasury without further Congressional action.
Congressman Guthrie questioned Mr. Elmendorf on the CBO’s estimates that this fund would only cost $2 billion, when the Secretary herself asserted that the fund was limitless and another member of the administration has said these funds can be used for an array of secondary purposes.
“The amount necessary to enable the secretary to make awards for state-based exchanges. These awards can be used to facilitate enrollment into the exchange. And you estimate that at $2 billion.
“And then the Kaiser Health News reported that a member of the administration, Donald Berwick, the Administrator for the Center for Medicare and Medicaid Services, was talking with the states about the pressure from Medicaid. He said to them that he was sensitive to that situation but his solutions however were to point states to funding that he said is already available to them, such as subsidies to establish insurance exchanges.
“And I would have to guess that if that is what the administration thinks should happen to help states through their budget crisis with Medicaid, that is going to be far more than $2 billion.
“The Secretary said there are no limits for how much you can spend under this provision. There is no limit, she said that. And she has no need for additional Congressional authority…So what assumptions did you use to get to $2 billion?"
NOTE: Elimination of the Secretary’s unlimited account will be considered tomorrow, March 31, 2011, by the Energy and Commerce Health Subcommittee at 9:30 a.m. EST in room 2123 of the Rayburn House Office Building.
