The CBO didn’t double count Medicare cuts

Regarding today’s controversy, the CBO’s Medicare estimates do not double count projected cuts in Medicare spending.  Today’s CBO’s letter that referred to “double counting” does not imply otherwise.

It is true that any Medicare savings will be used to pay for expanded coverage, but that has been reflected in all of the CBO projections.

If the projected cuts in Medicare spending materialize, the projected Medicare deficit will decline, but most or all of the reduction will be offset by increased spending on Medicaid and premium subsidies for persons with income up to 400 percent of the poverty level.

Think of it this way:  it’s as if you decide to borrow less to buy a cheaper car (cut Medicare spending) and instead take out a slightly smaller loan to finance an addition to your home (coverage expansion).

The CBO’s projections have made this clear all along.