NIGHTLY BUSINESS REPORT – Health Care Reform and Spending

Health care reform is in a new state of limbo. House Republicans voted to repeal it, but that bill has no chance of passing in the Senate. In the midst of so much uncertainty, tonight's commentator wants Washington to go a different route. He's Glenn Hubbard, dean at Columbia University's graduate school of business and former chairman of the Council of Economic Advisers under President George W. Bush.

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GLENN HUBBARD, DEAN, COLUMBIA GRADUATE SCHOOL OF BUSINESS: Last week, the U.S. House of Representatives voted to repeal the patient protection and affordable care act, signed into law by President Obama last March. Given the president's strong defense of the health care law, the House action is theater, right? Not necessarily. Many economists have voiced concern that the law will increase the nation's already runaway spending on health care and will raise health insurance premiums for the typical family plan by about 10 percent. While the new law emphasized coverage, it largely ignored costs. And high and rising costs reduce coverage and health care's value for insured households. From a budget perspective, the Congressional Budget Office estimates that the law's new health care entitlements will raise Federal health care spending by $1 trillion over the next 10 years. Next time, the House could start by replacing the act with rules that will allow market incentives to demonstrate their effectiveness and by asking President Obama to seek a second opinion. I'm Glenn Hubbard.