The real boondoggle here is all the manipulation that went into that calculation. The CBO uses a 10-year window for its analysis. Knowing this, the Democrats rigged the initial 10-years of the health care bill to create the illusion that it is "deficit neutral." Notice that the tax increases and cuts to Medicare happen right away, but the expensive part of the program doesn't kick in until July, 2013. That gives 4 years of revenue before they start spending any real money. Which, in turn, makes the first 10 years look like it lowers the deficit. Beyond that, however, the deficits skyrocket.
Not only that, but prominent Democrats have carved out certain "exceptions" for their own States. From Friday's Wall Street Journal:
A central feature of the Baucus bill is the vast expansion of state Medicaid programs.
Senate Majority Leader Harry Reid, who is worried about losing his seat next year, worked out a deal by which the federal government will pay all of his home state's additional Medicaid expenses for the next five years.
Another revenue raising feature of the Bill is a proposal to tax high end "Cadillac" insurance plans. Sen. Chuck Schumer didn't want a lot of angry overtaxed New Yorkers on his hands, so he and other similarly situated Democrats carved out a deal by which the threshold for this tax will be higher in their states. If you live in Kentucky, you get taxed at $21,000. If you live in Massachusetts you don't get taxed until $25,000.
Mr. Baucus will also pay for his bill by socking it to pharmaceutical companies, on the principle that drug companies are filthy rich and should have to contribute to health care. But New Jersey Senator Bob Mendez is concerned because 15 of the world's largest 20 Pharma companies have facilities in New Jersey. Thus Mr. Menendez's quiet deal for a $1 billion tax credit for companies investing in drug R&D.
Michigan Sen. Debbie Stabenow and Massachusetts Senator John Kerry included $5 billion in the bill for a reinsurance program designed to defray the medical costs of union members.