Weiss: House Budget Committee Plan Calls for Privatization of Medicare

Monday, July 24, 2017
Herb Weiss, GoLocalProv Guest MINDSETTERâ„¢

Over four months ago President Trump released his draconian FY 2018 Budget, now Congress begins to hammer out its budgetary spending plan. Last Wednesday, the House Budget Committee, chaired by Rep. Diane Black (R-TN), sent the Republican drafted budget plan to the House floor for consideration. After a 12-hour markup held in Room 1334 Longworth HO, the budgetary blueprint passed by a vote of 22 to 14, along party line. Rep. Black’s GOP controlled panel defeated 28 amendments offered by Democrats.   

Once the House and Senate pass their budget resolutions, the House and Senate Appropriations subcommittees "markup" appropriations bills. The House and Senate vote on appropriations bills and reconcile differences.

Rep. Black says that the GOP FY 2018 Budget Resolution, “Building a Better America,” passed on July 19, will balance the federal budget within 10 years by cutting spending, reforming government and growing the economy.  According to the House Budget chair, the recently released budget achieves $ 6.5 trillion in total reduction over 10 years.  It sets overall discretionary spending for the fiscal budget at $1.132 trillion ($621.5 billion in defense discretionary spending and $511 billion in non-defense discretionary spending). 

The House budget plan is the first step that Republicans must take to begin their efforts to overhaul the nation’s tax code to grow the economy.  It also provides increased funding for defense and the building of Trump’s border wall.  It also requires food stamp recipients to work for their benefits.  

Although the Social Security program is spared, it bars recipients from receiving Social Security Disability Income recipients from also receiving unemployment benefits. But, most worrisome to aging group advocates, the passed House Budget Committee budget makes major cuts to Medicaid, turning the Medicare program into a voucher program. But, Medicare is targeted for big changes. 

In the Eyes of the Political Beholder

Upon passage, the House Budget Chair, Rep. Black, said in a statement, “I am proud of the work done by the members of the committee. We’ve spent months reviewing all aspects of the federal government and have put together a plan that will balance the budget, promote economic growth, strengthen our national defense, and make Washington more accountable to taxpayers. Our budget also takes the crucial first step in the reconciliation process to fix our broken tax code and make long overdue mandatory spending cuts and reforms.”

But, Rep. John Yarmuth (D-KY), Ranking Member of the House Budget Committee, in a statement expressed a vastly different opinion as to the impact of the panel’s passed budget resolution. “Republicans on the House Budget Committee just approved a budget that the American people do not want and do not deserve from their government. Their budget adopts the worst extremes of the Trump proposal by cutting taxes for millionaires and billionaires at the expense of everyone else. It cuts at least $1.5 trillion from Medicare and Medicaid, and puts at risk investments in nearly every national priority, from education and veteran services, to transportation, environmental protections, and medical research. Democrats believe we should be investing in the American people, our economy, and greater opportunity for all, and we will continue to fight against this irresponsible budget when—or if—it is brought to the House floor,” he said. 

House Budget Plan Calls for Substantial Changes to Medicare

Medicare takes a huge hit, $ 487 billion over a ten-year period, in the House Budget Committee’s passed FY 2018 Budget, says Paul N. Van De Water, in a blog post on the website of Center on Budget and Policy Priorities (CBPP).  The Senior Fellow serving as CBPP’s Director, Policy Futures, says that the budget plan’s changes to Medicare include higher income-related premiums for those making $85,000 and over (twice the amount for couples), limits on malpractice awards, raising Medicare’s eligibility age from 65 to 67, also increasing cost sharing of beneficiaries. 

In his posting, Van De Water details the substantial changes made to Medicare, one of the nation’s largest entitlement programs, in the House Budget Committee’s passed budget.  He notes, it would “replace Medicare’s guarantee of health coverage with a flat premium support payment or voucher, [starting in 2024] that beneficiaries would use to help buy either private health insurance or a form of traditional Medicare.”  Although there are no details in the House Budget Committee’s plan to determine its impact on beneficiaries, he says that most people enrolled in traditional Medicare would pay more with the new changes than under the current law, according to a previous Congressional Budget Office analysis.

As the House Budget Committee began its markup of the FY 2018 budget, Max Richtman, President of the National Committee to Preserve Social Security and Medicare (NCPSSM) warned in a statement that the GOP-controlled panel “is targeting the health and financial well-being of America’s seniors by making another attempt to privatize Medicare.”

“Recent polling indicates that large majorities of Americans across party lines prefer that Medicare be kept the way it is, not to mention that President Trump repeatedly promised to protect the program during the 2016 campaign,” says Richtman.

Richtman says that converting Medicare into a voucher program is an existential threat to the program itself.  “Over time, giving seniors vouchers to purchase health insurance would dramatically increase their out of pocket costs since the fixed amount of the voucher is unlikely to keep up with the rising costs of health care,” he says.  “And, as healthier seniors choose less costly private plans, sicker and poorer seniors would remain in traditional Medicare, leading to untenable costs, diminished coverage, and an eventual demise of traditional Medicare, plain and simple.  Of course, raising the eligibility age to 67 - as the House spending plan also proposes – is a drastic benefit cut.”

Undermining Medicare has been a long-held dream of fiscal conservatives. Their “premium support” proposal is a thinly veiled scheme to allow traditional Medicare to “wither on the vine,” as former House Speaker Newt Gingrich once put it,” adds Richtman.

Privatization is being sold as “improving customer choice,” but based on the way current Medicare Advantage plans work, private insurance will continue to offer fewer choices of doctors than traditional Medicare does.  If traditional Medicare is allowed to shrink and collapse, true choice will disappear, too, says Richtman.

Stay tuned….

 

Herb Weiss, LRI’12 is a Pawtucket writer covering aging, health care and medical issues. To purchase Taking Charge: Collected Stories on Aging Boldly, a collection of 79 of his weekly commentaries, go to herbweiss.com.

  • Gina Raimondo 

    RI Governor 

    "Rhode Island is making strong progress to provide our people with the education and job training they need to be successful and to expand access to affordable, quality health care to virtually everyone in our state. 

    President Trump's budget betrays Rhode Islanders by giving huge tax cuts to corporations and the wealthiest Americans while drastically reducing federal funding for vital programs that create jobs, raise wages, and protect low-income Americans. 

    Even as we analyze President Trump's budget in the coming days to determine its specific impacts on Rhode Island, I appreciate the members of Rhode Island's Congressional Delegation for their leadership and advocacy, and I join them in calling on their colleagues in Washington, D.C. to stop the Trump administration from making massive cuts to health care, public schools, affordable housing, and other programs that Rhode Islanders rely upon."

     
  • Jim Langevin 

    U.S. Congressman

    “In March, President Trump released a budget outline that I strongly condemned for its drastic cuts to programs that help everyday Americans. Unfortunately, the President’s full budget proposal continues these harmful policies by gutting programs that invest in our economy, create jobs and provide crucial assistance to families across the country. 

    This proposal slashes funding for education, food assistance and health care for low-income seniors, children and people with disabilities. It makes cuts to worker training, environmental protection, and investments in medical research and advanced manufacturing. These are not mere luxuries, but programs that make meaningful differences in the lives of Rhode Islanders. 

    Congress must reject this cynical and misguided budget. Instead, we should work together in a bipartisan manner, as we did on the recently passed 2017 funding bill, to find a balanced approach to funding priorities that will support families, promote economic growth and provide for our national security.”  

     
  • David Cicilline

    U.S. Congressman

    “If a budget is a statement of your priorities and values, then Donald Trump’s budget shows he doesn’t understand the challenges facing honest, hardworking Rhode Islanders. This is a budget written by the wealthiest Americans for the benefit of the wealthiest Americans. But it’s a setback for the middle class. It makes life harder for anyone who’s trying to punch a ticket to the middle class.”

    Donald Trump has already proposed a huge tax cut for billionaires. But the budget he released today says everyone else is on their own. This budget eliminates hundreds of millions of dollars for job creation. It zeroes out funding for workforce training and good-paying manufacturing jobs in Rhode Island. And it makes it even harder for young people to succeed by cutting teacher training, eliminating afterschool funding, and making it harder to pay off student loans.”

    This budget does nothing to address Rhode Island’s crumbling infrastructure. It eliminates the TIGER grant program, which is critical to supporting local infrastructure projects like the new commuter rail station in Pawtucket. And it cuts funding for public transit by $928 million.”

    And most worrisome of all, this budget makes our towns and cities less safe. It actually cuts funding for firefighters. It cuts billions from the EPA and other resources to protect the water we drink and the air we breathe. And it slashes $978 million from the Army Corps of Engineers – meaning Rhode Island will be less prepared for hurricanes and have fewer resources to protect the quality of our waterways.”

    Plain and simple, this is not a budget that any Member of Congress should be comfortable supporting. Along with my colleagues in the House Democratic Leadership, I will do everything I can to reverse these devastating cuts and shape a budget that invests in the future of our country and puts honest, hardworking families first.”

     
  • Sheldon Whitehouse 

    U.S. Senator

    “This budget is reckless, plain and simple. The President proposes massive cuts to Medicaid, breaking yet another campaign promise. He seeks to decimate the federal government’s central command in the battle against the opioid crisis affecting communities from Burrillville to Westerly. He pursues tens of billions of dollars in cuts to student loans and loan forgiveness programs.

    His plan would slash funding for research into life-saving cures; lay waste to endowments that support Rhode Island’s world-class cultural institutions; hamstring the EPA so big polluters can poison our air and water; and weaken NOAA, sapping critical resources for coastal economies like Rhode Island’s. The list goes on.

    These senseless, irresponsible choices serve one purpose: to pave the way for tax cuts for the very wealthiest.  The good news is that this extremist proposal will go nowhere in the Senate. I look forward to moving past this political stunt of a budget and working on one the American people will support.”

     
Delivered Free Every
Day to Your Inbox