Senators: Trade $1 trillion in Medicare cuts for debt ceiling

Treasury Secretary Timothy Geithner's warning this week that the federal government will hit its borrowing limit (a.k.a. the "debt ceiling") on December 31 elicited something resembling a collective groan from policymakers and political reporters who have their hands full covering the fiscal cliff.

Indeed, when the two parties eventually reach agreement on resolving the "fiscal cliff," that agreement seems likely to leave the the debt ceiling unaddressed. Though President Obama has indicated that he would like an agreement that includes raising the debt ceiling, Republicans, who do not like the hand they've been dealt on taxes, see it as the only leverage they have in extracting spending cuts from the administration.

And right on cue, Tennessee Republican Sens. Lamar Alexander and Bob Corker today proposed a debt ceiling agreement that would raise the borrowing limit by $1 trillion dollars in exchange for commensurate cuts to Medicare outlays over 10 years.

Republicans argue that, because runaway entitlement spending is the biggest single driver of federal deficits, the only way to truly solve the structural debt problem is to reform entitlement programs in a way that reduces their cost. Corker echoed this concern when he announced the proposal, which he argued would "cause these programs to be solvent over the long haul, so future seniors will have the opportunity to enjoy these benefits that we think are very important."

• Treasury taking steps to avoid hitting debt limit on Dec. 31
• Sen. Corker on "fiscal cliff" situation: "It's a travesty"

"We have to have someone address the Medicare 'fiscal cliff'," Alexander argued, "or the seniors and, soon thereafter, young Americans are going to be pushed over that cliff and they're going to wonder why we didn't do anything."

Beyond reining in entitlement costs, Alexander argued, the proposal could also grease the wheels of the broader budgetary debate. "Taking these two provisions together would provide certainty for the economy," he said. "It would be a linchpin for a budget agreement that would get the economy going again. "

[freewillybird]

Did everyone forget that the last president (GWB) added a major new program to medicare, the drug program? Now we are cutting Medicare? why not just undo everything that GWB did?

[HolyVoice]

"Tell you what. The "Cliff" is a bit painful, but it is manageable. I'll take the CLiff."

I am convinced that all Republicans believe this. But it is not fiscally responsible, and they should be fired or their pay docked.

I heard it explained best on the Sunday shows as, a conflict in the "incentive structure" of strongly partisan GOP members. They believe that they can never vote to raise taxes, so there can be no increase in revenues. To not raise taxes on the wealthy--and not raise the debt ceiling for covering government business, they become deconstructionists.

[WHAT-IS-HE-SMOKING]

Cut Medicare by $1Trillion and the Military by $1Trillion!!!

[sabniz]

everything should be on the table, not just one. SS CPI change should be included. cutting on government overlapping agencies and waste is another thing must be include.

[knsn_for_cmn_sense]

That one trillion BETTER BE ACROSS THE BOARD. Including people already in Medicare.

They should reap what their votes over the years have sown. And not make younger people pay for their fubars.

[hbrvrv]

Billionaires should pay all costs for overseas wars and military. After all they get all the benefit for protection of their overseas yachts, money and factories. The working people get no benefit but still pay the taxes.

[marychgo]

Money can certainly be saved within Medicare: hiring hundreds of auditors to chase Medicare fraud would be a good start! (No, MOST seniors DON'T need motorized wheelchair/scooters...or most other treatments and services touted on TV!) And it would be great if the GOP finally permitted Medicare to negotiate the prices it pays to drug manufacturers/wholesalers.
But if Alexander and Corker have ANY thought about enacting cuts that would affect Medicare beneficiaries, here's my suggestion: base ALL Medicare cost-sharing (Part B premium, deductibles, co-pays, out-of-pocket limits) on percentages of (all) income rather than flat dollar amounts. If one senior living on $20,000 a year and another living on $200,000 a year have similar gallbladder operations, the senior earning $200,000 a year ought to pay (roughly) ten times as much toward the cost of that operation/hospitalization as the senior making $20,000 a year.

[sueb45]

Medicare only pays for a regular wheelchair if you cannot walk more than 10 steps with crutches. Medicare only pays for a motorized wheelchair or scooter if you cannot wheel yourself in a regular wheelchair. The commercials you see on TV about getting a Hoveround or some other scooter for little or no co-pay with Medicare or Private Insurance, has to be talking about private insurance because, trust me MOST seniors DON'T get a motorized scooter from Medicare. I've been disabled for 30 years from a tumor on my spine, I can walk about 20 steps with crutches and I had to pay for my regular wheelchair and my motorized scooter myself (I borrowed the money from relatives and repaid them over the years). I do agree with your last paragraph---but I get slightly over $9000 a year....try living on that GOP!!! I don't have medigap insurance because I can't afford it and I haven't been to a doctor in years....because I can't afford the 20% co-pay. Why do the republicans hate seniors and the disabled?

[sueb45]

Medicare only pays for a regular wheelchair if you cannot walk more than 10 steps with crutches. Medicare only pays for a motorized wheelchair or scooter if you cannot wheel yourself in a regular wheelchair. The commercials you see on TV about getting a Hoveround or some other scooter for little or no co-pay with Medicare or Private Insurance, has to be talking about private insurance because, trust me MOST seniors DON'T get a motorized scooter from Medicare. I've been disabled for 30 years from a tumor on my spine, I can walk about 20 steps with crutches and I had to pay for my regular wheelchair and my motorized scooter myself (I borrowed the money from relatives and repaid them over the years). I do agree with your last paragraph---but I get slightly over $9000 a year....try living on that GOP!!! I don't have medigap insurance because I can't afford it and I haven't been to a doctor in years....because I can't afford the 20% co-pay. Why do the republicans hate seniors and the disabled?

[sjc_1]

If you want to save $100 billion per year by income and net worth testing Medicare, then fine. If you have a net worth over $10 million and receive over $250,000 per year in "investment" income, then you can buy your own health care insurance.

[stevehamilton858]

What stupid ignoramuses these men are. The United States has legal, contractual obligations that need to be paid in order to avoid default.

If the United States were to default on these legal obligations, the ramifications to our financial system and the cost of borrowing would make the Great Depression look like a divot on the 17th green. Who would get stuck with paying the hundreds of millions in increased interest costs if the US went into default? Why, every taxpaying entity in the country - citizens, corporations, partnerships. This would be the largest tax increase in the nation's history, and these jamokes toss the concept of a US default around as if it were a ping pong ball. I doubt that either of them could pass Econ 101 at any college in the country. This is a perfect example of what has happened to the Republican Party, which used to stand for fiscal conservatism. Their idea is myopic radicalism at its worst. I hope somebody in their party kneecaps them and keeps them from voting in this incredibly stupid manner. In fact, if they cause the US to default, I believe they should be charged with sedition, and ridden out of Washington on a rail. (whatever happened to tarring and feathering)?

[RollotheNorman]

The central truth here is Lamar and Bob get their healthcare through Congress, they don't have to depend on Medicare. So a cut for the yokels is fine as long as Congresscritter (and retired Congresscritter) healthcare is not modified.

[grinchsmom]

Amazing! And you Tennesseans voted for these two bozos? They are throwing you under the bus! You need Medicare in Tennessee too, don't you?! Especially with more baby-boomers retiring every year and the problem you have with obesity and diabetes in your state. I'd think twice about ever voting for these two guys again. You'll end up in the poor house if you're not careful! Ya'll better start eating more veggies!