The CBO has posted its first analysis of the Senate's health care bill, which you can access
here.
As advertised, the bill reduces the deficit considerably in both the near- and long-term, while expanding coverage to 94 percent of Americans. By 2019, 25 million people would be buying insurance through a health insurance exchange.
However, it's not all roses. For instance, based on an assessment of the political popularity of the public option, the CBO has concluded that enough states will "opt out" to prevent a full third of consumers from purchasing government insurance.
"CBO's analysis took into account the probability that some states would opt not to allow the public plan to be offered to their residents. Rather than trying to judge which states might opt out, CBO applied a probability recognizing that public opinion is divided regarding the desirability of a public plan and that some states might have difficulty enacting legislation to opt out. Overall, CBO's assessment was that about two-thirds of the population would be expected to have a public plan available in their state."
That means that enrollment in the public option would be lower under the terms of the Senate bill than under the terms of the House bill. "CBO estimates, meaning that total enrollment in that plan would be 3 million to 4 million," compared to six million under House legislation.
And just as in the House bill, the public option would cover more medical services, and attract a sicker risk pool, leading it to charge slightly more on average for premiums than private insurers. "CBO's assessment is that a public plan paying negotiated rates would attract a broad network of providers but would typically have premiums that were somewhat higher than the average premiums for the private plans in the exchanges."
There's certainly more in the report, and I'll bring you more key details throughout the day.

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Lestatdelc
November 19, 2009 2:38 AM
CBO is smoking crack about the opt-out. Not a single state will vote to opt-out. Perhaps the CBO should use as their baseline how many states opted-out of the stimulus funds, despite the high-drama rhetorical nonsense Perry, Jindal and all the other GOP goofs vomited far and wide into the media.
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FebM
November 19, 2009 6:58 AM in reply to Lestatdelc
Great point, as a wide eyed liberal living in the deep red south, I am scared stiff of the 'opt out' option as these are the places where healthcare is currently not an option.
How about opt congressional district?
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ray reynolds
November 19, 2009 8:24 AM in reply to Lestatdelc
This is like taking medicare away after one year.
NO WAY!
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lousgirl84
November 19, 2009 8:27 AM in reply to Lestatdelc
LOL!! Thanks for my first good laugh of the morning. Hey lestatdelc are you an insomniac? I see you were at it at 2:30 am. I thought I was bad starting at 5 am!! That's good because I always like what you have to say
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theone718
November 19, 2009 10:01 AM in reply to Lestatdelc
Don't stop at the Stimulus funds. Try Medicaid, Medicare, Social Security. NOONE is opting out.
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wake up
November 19, 2009 6:34 AM
It's a poison pill -- let the Republicans swallow it, and lead the fight to opt out in as many states as they like.
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hallam
November 19, 2009 8:08 AM in reply to wake up
The opt out is not there for the GOP, it is there to provide cover for Democrats to enable them to vote for the bill.
But it sure is going to be fun watching the GOP trying to explain to its base that opting out is going to be electoral suicide. The tea party faction won't care.
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hollywood
November 19, 2009 7:02 AM
Yes I am sure Texas with the highest rate of uninsured will opt out and screw a bunch of their poorest and sickest again. Why don't you fuckers just opt out of the USA and start your damned Christian Nation of Corporations. Please! Take the rest of the deep dumb south with you and then the REAL America can get on with the business of a more perfect union.
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lousgirl84
November 19, 2009 8:29 AM in reply to hollywood
I'll even chip in to help them leave!!!
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Virginia
November 19, 2009 8:59 AM in reply to hollywood
Leading in to my favorite counterfactual: I really truly wish that we had let the South secede back in 1861.
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dpabowen
November 19, 2009 9:38 AM in reply to Virginia
I'm liberal and from the South, as are a lot of readers here. Are we worth writing off just because you don't like the politics in our region?
You and the commenters above sound a lot like the bigots you'd find on the right-wing boards. In fact, your opinions smack of the "love it or leave it" mentality of the right wing of this country. This kind of hate-filled, ignorant rhetoric doesn't jibe with the liberal values I believe in and hold dear. I frequently see it here, and I'm disturbed by it every time.
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Dorn76
November 19, 2009 10:08 AM in reply to dpabowen
Don't worry about it. We're not all jerks up here.
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allastair
November 19, 2009 10:21 AM in reply to dpabowen
I can definitely dig what you're saying. I have lived in the South myself (although I live out in the "trending blue" West right now) and I think your hope for more unity on these issues is well placed. But I also think its important to keep in mind that the anger behind the "let them leave" mentality comes from a slow burning frustration that has taken a very long time to build. I think it is arguable that this would be a significantly more progressive country with, in particular, far better treatment of the poor and middle class if not for the politics of the South. Mind you, I don't think that's a foregone conclusion by any means but its definitely an arguable position. From that perspective then, the fact that the politics of say, Texas might prevent a Democratic majority in say, New Hamspshire from creating better health care options for the less then wealthy is really pretty aggravating.
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GillesDeleuze
November 19, 2009 10:48 AM in reply to dpabowen
Dont worry, its just a response to the past 8 years of southern anti-intellectual, anti-culture hegemony that was stuffed in our faces.
If you really want to defend NASCAR, pro-wrestling, attitudinal racism, ignorance, poor public institutions, etc. be my guest.
Just don't expect progressives to get on board in the name of liberal tolerance.
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The Commenter Formerly Known as NCSteve
November 19, 2009 11:16 AM in reply to Virginia
Well here's a thought. Just running it up the flagpole beneath my beloved Confederate and White Power swastika flags to see how it flies, dontcha know . . .
When you people up in the virtuous and perfect Union states stop foisting people on a sorrowing nation like, say . . .
Rudy Guiliani, Mitt Romney, Steve King, Dana Rohrbacher, Michelle Bachmann, "Mean Jean" Schmidt, House Minority Leader John Frakking Boehner Darrell Issa, Brian Bilbray, Jim Senssenbrenner, Pete Hoekstra, Dan Burton, Mike Pence, the increasingly hysterical and incoherent Judd Gregg, Sam Brownback and Pat Roberts, the many, many members of the House Republican Study Committee who are from Union states and, oh yeah, outstanding "Democrats" like Bart Stupak and Joe Lieberman onto the national . . .
When you get all those people replaced by Democrats and banished from the national stage, then you people can talk smack about the south. Until then, might I suggest that refraining from the kind of oh-so-superior sanctimonious sneering hypocrisy that many down here so unfairly attribute to all yankees might be a bit more productive in moving things forward?
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Virginia
November 19, 2009 12:02 PM in reply to The Commenter Formerly Known as NCSteve
Sure there's some assholes in the North, but the truly destructive, highest quotient of asshole-ness has definitely come from the south. (I lived there many years myself, but the way, and love a lot of things about it.) I, like many others, am just sick and tired of every progressive initiative being blocked by the dodos elected by southerners. Without the south, I truly believe that we would have had universal helath care many years ago and certainly wouldn't constantly have to fight rear-guard actions for abortion rights and teaching good science in schools.
That's why the opt-out doesn't bother me too much. If you live in a state that elects assholes, then you have to either live with that, change it, or move. It shouldn't mean that the rest of us should see our initiatives come grinding to a halt. And it's not like moving to another country - you don't have to qualify for immigration or learn a new language.
In any case, I expect in realty that there will be very few opt outs and that all will eventually opt back in, just as the Confederacy would have rejoined the Union by 1900 if we had just let them secede.
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The Commenter Formerly Known as NCSteve
November 19, 2009 3:59 PM in reply to Virginia
Guy by the name of Harry Turtledove who used to teach history at UCLA did a pretty amazing series of "if the South had won" books that actually made a pretty compelling case for an dark alternative. Let's just say when you add a Confederacy that's beholden to Britain and France to a rump U.S. that's been humiliated and looking for allies and extrapolate a half century out to 1914, things start looking kind of ugly.
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markg8
November 19, 2009 7:09 PM in reply to The Commenter Formerly Known as NCSteve
I got my dad the series of his alt history books about lizards with a 50,000 year old civilization from outer space invading the planet in the middle of WW 11.
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markg8
November 19, 2009 7:13 PM in reply to markg8
It all started falling apart for the lizards when the lizard females started taking after their human counterparts and choosing who'd they'd mate with instead of just succumbing to any old lizard when they went into heat.
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Icon
November 19, 2009 8:15 AM
The opt-out is kind of genius policy-wise. It gives states whose lawmakers have concerns (however unfounded) about the public option a chance to say no. These lawmakers are almost undoubtedly Republicans, who if they control enough of the state's government to do so will choose to opt-out.
However, when the population sees that the public option is considerably less scary (indeed, even beneficial) and that the Republicans who made their states opt out were bold-faced lying to them, something amazing will happen: Democrats have a powerful argument for throwing the Republicans out of office on the state level in some of the reddest parts of the country.
Though the opt-out is not in the House bill, it is strongly in the strategic interests of the Democratic party to include it in the final bill. Not just because it will help the final bill get through the Senate; because it will ultimately bring the Democrats to power in places that haven't elected Democrats since the partisan realignment.
It may also help the final bill clear the house without the Stupak amendment. Instead of writing off the fiscally conservative dems and banking on the pro-life dems, an opt-out would help them get the votes necessary to pass the bill in the House too.
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Guildman
November 19, 2009 8:53 AM in reply to Icon
I haven't heard yet if there's an "opt-back-in" provision in the bill, but I hope not.
If red states (say in the deep south) choose to opt-out for political reasons, and then the PO turns out to be as good as we all believe, it might actually start to reverse those decades-old migration trends.
But I don't know. Is lack of adequate health care coverage a bigger motivator than snow?
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The Commenter Formerly Known as NCSteve
November 19, 2009 11:18 AM in reply to Guildman
There is. State legislature has to pass a law to get out and repealing it gets them back in.
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Tanjaoui
November 19, 2009 8:25 AM
Opt out of a program that doesn't start until 2014, that doesn't have anyone signed up yet, that doesn't have any existing network of providers, that isn't assured a risk adjuster to make up for all the sick patients it will attract, that (like Medicare) isn't allowed to negotiate bulk purchases with drug makers...I don't see how it's going to work. End users are better off without the po and without a mandate. Keep insurance reform, and hold off on health care reform until later - as early as next year. Public education on this has just started. A mandate with spiraling rates sets up a Republican talking point.
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lousgirl84
November 19, 2009 8:31 AM
You know the bill in the end will not be perfect but it is a start and it is a long way from where we were and I must thank our president for even attempting this and letting the process work. I for one am very happy his is our President. I shudder to think where we would be today if it weren't for him.
I hope we can get behind our President. He really needs our support while the opposition tries daily to destroy him and the fringe are trying to figure out a way to assassinate him
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lousgirl84
November 19, 2009 8:36 AM
Ihaven't seen this on tpm and I couldn't resist a visit to Huffpo just to see what they are saying and found this interview with Obama and Fox.
http://www.huffingtonpost.com/2009/11/19/fox-news-interview-with-
o_n_363266.html
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LeaningLeft
November 19, 2009 9:01 AM
Does anyone know how the decision to opt-out works? Does each state get to decide how it decides (the governor decides, the legislature votes, ballot referendum, etc...)? Or does the bill stipulate how each state must decide?
That may make a huge difference in some states.
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Icon
November 19, 2009 2:35 PM in reply to LeaningLeft
The state would have to pass a statute to opt out.
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Maritza
November 19, 2009 9:33 AM
Opt-out according to CBO will only attract 3-4 million Americans. That really isn't that many.
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AnswerFrog
November 19, 2009 9:33 AM
How about:
Try the opt-out and when the usual suspects balk at including any kind of public option, we threaten to revise it to a full robust public option and enact via reconciliation or even better, eliminating the filllibuster. If they aren't going to support a compromise measure, then FUCK THEM. The threat of this -- either get the compromise or get something worse (according to you). Compromises needs to be met with compromise. If it isn't, then ram the full PO down their throats.
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lousgirl84
November 19, 2009 9:45 AM
I wonder what happens if the insurance companies do some of the things this bill is meant to keep them from doing. What penalties? Consequences?
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govewood
November 19, 2009 9:46 AM
I think the budgetary considerations for states with "opt out" are huge. They're already going to have to deal with the expansion of Medicaid to those at 133% of poverty level. If those between 133% and 300% of poverty level can't find affordable private insurance in the exchanges, thus needing the "public option", but can't get it in their state, and can't move to a state that hasn't opted out, then those people are thrown back to the "emergency room" "compelled to treat" scenario or other publicly provided treatment options. These options all involve significant state and local government funding. The "public option" is an obvious money saver for state governments and their taxpayers. The state politics of opting out are dicey in so many ways for all the states that, the Perrys, Sanfords, and Jindals of the world will be riding another Populist tiger. A tiger that could eat them up.
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Odel Roo
November 19, 2009 7:37 PM
A full .33 of consumers or is it really .013 of those that actually may qualify for the PO... I think there is a BIG difference!
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Stephanie Hunter
November 19, 2009 9:01 PM
This is true ONLY is the PO is not structured wisely. there's a structure that's already working and keeping costs low and steady. Congress needs to learn from it. http://cli.gs/23yYaM/
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