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Obama's Plan for Deficit Includes Reforms to Medicare, Medicaid

April 13, 2011
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During a speech today at George Washington University, President Obama set a goal of reducing the U.S. deficit by $4 trillion within 12 years and highlighted reforms to Medicare and Medicaid.

According to a fact sheet released to coincide with the President’s speech, his plan aims to build on the Affordable Care Act and reduce the growth of healthcare spending. “The President opposes any plan that would simply shift costs to seniors and the vulnerable by undermining Medicare and Medicaid,” the fact sheet read. The proposed reforms to Medicare and Medicaid would save $340 billion by 2021, $480 billion by 2023, and at least an additional $1 trillion in the subsequent decade. The reforms include initiatives to:

· Bend the long-term cost curve by setting a more ambitious target of holding Medicare cost growth per beneficiary to GDP per capita plus 0.5 percent beginning in 2018. This would involve strengthening the Independent Payment Advisory Board (IPAB).

· Make Medicaid more flexible and efficient without resorting to block granting the program, ending federal partnerships with States, or reducing healthcare coverage for seniors in nursing homes. This would result in a combined Medicaid savings of at least $100 billion over 10 years, according to the fact sheet.

· Reduce Medicare’s excessive spending on prescription drugs as well as lower drug premiums for beneficiaries without shifting costs to seniors or privatizing Medicare. A combined Medicare savings of at least $200 billion over 10 years is forecasted.

The White House plan overall looks to implement $2 trillion in spending cuts, $1 trillion in tax increases, and $1 trillion in lower debt payments.

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Chart: What Obama's Deficit Reduction Plan Looks Like

Factbox: Obama sets goal of reducing deficit by $4 trillion

How the White House Deficit Reduction Plan Compares

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Comments

I donot believe this should be done ever. The elderly are almost the forgotten generation. Most people as they are getting older and need some help, they don't always have the family to go with them to doctors or hospitals. They need that help so much and no-one is there to help them remember, then their health gets worst. Doctors then continue to follow a health care plan on them and knows there is no-one to help them. It is sad but a fact. If it was not for the elderly or that generation the younger families would not be here in this world. It has got to stop with this cycle. They will be in that generation sooner than later. Is that what they want? I doubt it and they think it won't happen to them. Well it will, if things with the elderly doesn't change. All of us better see that it changes for the better.

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