Updated Aug 26, 2011 2:30 PM EDT
Medicare will be scrutinized by the bi-partisan committee that will be appointed to make recommendations to Congress for reducing entitlements, as a result of the recent debt compromise
. Medicare will be protected, however, from the automatic reductions in entitlements that will go into effect if the bi-partisan committee doesn't come to any agreement, or if Congress doesn't adopt their recommendations.
What could this mean for your retirement planning? To see what this bi-partisan committee might recommend, let's take a look at the following recent proposals to change Medicare:
- Proposals by Rep. Paul Ryan (R-Wisconsin)
- The report of the National Commission on Fiscal Responsibility and Reform, the bi-partisan panel headed by former Senator Alan Simpson (R-Wyoming) and Erskine Bowles, known as the Simpson-Bowles recommendations.
- Public remarks by President Obama
It's important to keep in mind that the Patient Protection and Affordable Care Act -- a.k.a. Health Care Reform and Obamacare, passed in 2010 -- contains provisions to contain the costs of Medicare, as well as expand benefits in some areas. Many of these provisions haven't yet become effective
, so let's review those provisions first.
Next: A review of Obamacare
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