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July 9, 1999

CBO: The Kennedy Bill (S. 6) Is a $72 Billion Hidden Tax Increase

Beginning July 12, the Senate will debate the "Patients' Bill of Rights Act" (S. 6), sponsored by Senators Daschle and Kennedy. Senator Kennedy claims his bill would cost "less than a Big Mac." However, the Congressional Budget Office (CBO) estimates S. 6 would impose costs on the private sector totaling $72 billion over five years.

TOTAL COST TO PRIVATE SECTOR OF THE PATIENTS' BILL OF RIGHTS ACT (S. 6)
	By Fiscal Year, in Millions of Dollars
	2000	2001	2002	2003	2004	2000-04
Provisions in Title I*	4,900	10,500	14,900	18,800	23,100	72,000
SOURCE: Congressional Budget Office

(Note: Figures include cost of expanded liability, which CBO does not consider a mandate. Nonetheless, S. 6 mandates that patients buy the protection of trial lawyers, which CBO indicates will increase premiums. CBO estimates the cost of S. 6's non-liability mandates to be $56 billion over five years.)

Washington calls this a "private sector mandate." The rest of America calls it a tax increase. Instead of writing a check to the IRS, Americans will pay this tax as part of their health insurance premiums every month.

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