Posts Tagged ‘Healthcare benefits’

Capitol Hill Kabuki

Thursday, June 23rd, 2011

Five Senators want to take the House-passed Medicare plan off the table in bipartisan deficit reduction talks, claiming that the plan effectively dismantles the program.  According to the Senators, the Medicare plan, which passed as part of a budget proposal in April, would jeopardize senior citizens’ current benefits and double out-of-pocket costs.  The five are Senator Ben Cardin (D-MD); Senator Sherrod Brown (D-OH); Senator Bill Nelson, (D-FL); Senator Claire McCaskill, (D-MO); and Senator Jon Tester, (D-MT).

In a letter to Vice President Joe Biden, the senators wrote:  “We are aware the administration has rejected this proposal since its passage by the House, and we applaud your efforts to educate the American people about its serious implications.  We encourage you to remain unwavering in opposition to this scheme.  For the good of the nation’s seniors, it must remain off the table.”

According to the letter,“This proposal would never pass Congress on its own, and it does not belong in a larger deal either.  It would be devastating for America’s seniors, who would see their out-of-pocket costs for healthcare double and the benefits they currently enjoy jeopardized.  Under this risky proposal, insurance company bureaucrats would decide what seniors get.”  Biden is leading talks to raise the debt ceiling and negotiating with lawmakers regarding ways to reduce the deficit as a trade-off to raise the debt ceiling.

The deficit and debt limit – whose ceiling the nation is rapidly approaching – are part of the conversation on Capitol Hill.  “I’m willing.  I’m ready. It is time to have the conversation” about deficit cuts and the debt limit, said House Speaker John Boehner

(R-OH), urging President Barack Obama to involve himself personally.  “It is time to play large ball, not small ball.”  House Democratic leader Representative Nancy Pelosi (D-CA) said, “I could never support any arrangement that reduced benefits for Medicare.  Absolutely not,” she said,” emphasizing a position she and other Democrats had laid out at their own meeting with the president.   Given Medicare’s size — nearly $500 billion a year — any deal on cutting future deficits is likely to include savings from the program, and may include the benefit cuts that most Democrats oppose.

The Obama administration has come out against the Medicare reforms in the House plan –  authored by House Budget Committee Chairman Paul Ryan (R-WI).  The Senators insist that this is a non starter, and stressed that they must not be a point of negotiation during the ongoing debt ceiling talks.  Despite the Democrats’ opposition, Senate Minority Leader Mitch McConnell (R-KY) insists that the Medicare reform plan will be “on the table” in negotiations.  “We are going to discuss what ought to be done,” McConnell said.  “I can assure you that to get my vote to raise the debt ceiling, for whatever that is worth…Medicare will be a part of it.”

Some Republicans are backing away from Ryan’s proposal.  For example, presidential candidate Newt Gingrich had egg on his face after suggesting that the plan is “radical… right-wing social engineering,” Gingrich’s explanations proved too little, too late for many conservatives, who continue to hammer the former House speaker for his gaffe.

In an op-ed piece for the San Francisco Sentinel,  Chrystia Freeland writes that “The political theater in the United States this week has been all about the ‘debt ceiling’:  Congress voting not to increase it; President Barack Obama and the House Republicans are meeting to discuss it; and the Treasury warning that failure to raise it will bring economic apocalypse for the United States and the world.  Elites like to accuse ordinary Americans of a lack of political sophistication, but everyone from Main Street to Wall Street is savvy enough to understand that so far, the fighting over the ceiling is pure Kabuki.  As with the budget deal earlier this year, the real negotiating is unlikely to happen until the very last minute.  But everyone also understands that this summer game of brinkmanship matters because it is a proxy war being fought over a very real problem:  the growing national debt and deficit.  At just under 60 percent of gross domestic product, the U.S. national debt is lower than that of France, Germany and Britain.  And the rest of the world still seems delighted to lend the United States money on historically generous terms.”