Government Operations: Federal Administrative Costs Under HSA

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Report Type	Reports and Testimonies
Report Date	June 15, 1994
Report No.	HEHS-94-187R
Subject	Administrative costs Budget deficit Cost analysis Deficit reduction Excise taxes Future budget projections Health care cost control Health insurance cost control Proposed legislation Clinton Health Care Plan Health Security Act National Health Care Reform Initiative Budget administration

Summary:

Pursuant to a congressional request, GAO reviewed the administration's justifications for its administrative cost estimates under the proposed Health Security Act. GAO noted that: (1) the Office of Management and Budget (OMB) identified the federal functions required to implement the act and estimated the costs of starting and supporting those functions for 6 years; (2) OMB had difficulty in estimating federal administrative costs because it could not determine what federal entity would carry out certain functions and it had little time to develop the estimates; (3) OMB did not document the assumptions it used in formulating the estimates and would not discuss its methodology with GAO; (4) OMB excluded costs for providing health security cards, spread start-up costs over the first 2 years of the act's implementation, and assumed revenue from a tobacco tax would cover $1.279 billion in 1995 administrative costs; and (5) it could not reconstruct the OMB estimating methodology and did not attempt to create an independent estimate.

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Government Operations: Federal Administrative Costs Under HSA