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October 2, 2000
 

Honorable Tom Bliley
Chairman
Committee on Commerce
U. S. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

At your request, the Congressional Budget Office has prepared the attached table showing our preliminary estimate of the changes in direct spending that would result from enacting H.R. 5291, the Beneficiary Health Improvement Act, as ordered reported by the House Committee on Commerce on September 27, 2000. This estimate is based on draft legislative language and modifications discussed with staff.

CBO estimates that enacting the bill would increase direct spending by $1.7 billion in 2001, $18 billion over the 2001-2005 period, and $55 billion over the 2001-2010 period. Because the bill would affect direct spending, pay-as-you-go procedures would apply.

I hope this information is helpful to you. The CBO staff contact is Tom Bradley.

Sincerely,

Dan L. Crippen
 

Attachment

cc: Honorable John D. Dingell, Ranking Minority Member
 
 

 
CBO ESTIMATE OF DIRECT SPENDING IN H.R. 5291, THE BENEFICIARY HEALTH IMPROVEMENT ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON COMMERCE ON SEPTEMBER 27, 2000 (BASED ON DRAFT LEGISLATIVE LANGUAGE AND MODIFICATIONS DISCUSSED WITH STAFF)
  Outlays by Fiscal Year, in Billions of Dollars
 
  2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001-
2005		 2001-
2010
Title I: Beneficiary Improvements 0.3 0.4 0.5 0.7 0.9 1.2 1.3 1.5 1.7 2.0 2.8 10.4
 
Title II: Other Medicare Part B Provisions 0.2 0.5 0.4 0.4 0.6 0.7 0.8 1.0 1.2 1.3 2.1 7.1
 
Title III: Medicare Part A and B Provisions 0.1 0.7 0.3 0.1 0.2 0.2 0.2 0.3 0.3 0.3 1.3 2.6
 
Title IV: Medicare+Choice Program Stabilization and Improvements 0.8 1.0 1.2 1.5 1.8 1.5 2.2 2.5 2.8 3.2 6.2 18.4
 
Interaction: effect of fee-for-service provisions on Medicare+Choice payments 0 0.3 0.3 0.3 0.5 0.6 0.8 1.0 1.2 1.5 1.4 6.5
  Subtotal, Gross Medicare Spending 1.3 2.9 2.7 3.1 3.9 4.1 5.3 6.2 7.2 8.4 13.9 45.1
 
Part B Premiums -0.2 -0.4 -0.3 -0.4 -0.5 -0.5 -0.7 -0.8 -0.9 -1.1 -1.7 -5.8
  Subtotal, Net Medicare Spending 1.2 2.5 2.3 2.7 3.4 3.6 4.6 5.4 6.3 7.3 12.1 39.3
 
Title V: Medicaid 0.5 1.3 1.3 1.2 1.3 1.5 1.5 1.6 1.8 1.8 5.7 13.9
 
Interaction: effect of Medicare provisions on federal Medicaid spending a a a a 0.1 0.2 0.2 0.2 0.2 0.3 a 1.2
  Subtotal, federal Medicaid 0.5 1.2 1.2 1.3 1.4 1.6 1.8 1.9 2.0 2.1 5.7 15.1
 
Title VI: State Children's Health Insurance Program a a a a a -0.1 a 0.1 0.1 a 0.2 0.3
 
Title VII: Extension of Special Diabetes Grant Programs 0 0 a 0.1 0.1 0.1 0.1 0.1 a a 0.2 0.5
 
  Total, Changes in Direct Spending 1.7 3.8 3.6 4.0 5.0 5.2 6.5 7.4 8.4 9.4 18.2 55.2
a. Costs or savings less than $50 million.