Democrats ready to commit suicide? Senate health bill will slash $491 billion from Medicare

Seniors back Medicare overwhelmingly, as do non-seniors!

The official analysis of the Senate health care "reform" bill on which Majority Leader Harry Reid wants the first vote tomorrow is out from the non-partisan Congressional Budget Office. The most important number in this "scoring" of the bill is this: it will cut Medicare by a whopping $491 billion.

As was the case with the House bill, most of the public debate and media attention to the Senate version concerns the "public option," the total cost and new taxes proposed, and whether or not federal money will somehow wind up paying for abortions.

The huge Medicare cuts are still largely hidden from view, because Democrats don't want to talk about them and most Republicans talk about the cuts only by way of accusing Democrats of using budgetary flim-flim to make the bills appear "deficit neutral."

But these cuts are a very big deal. They will affect some 46 million current Medicare beneficiaries and millions more who are past 55 and beginning to worry about health care coverage in retirement. As the full impact of these cuts becomes clear to this reliably voting segment of the population, the backlash against any member of Congress foolish enough to vote for the bills will be fierce and merciless.

It's as if Democrats in Congress are prepared to commit political suicide. They have backed themselves into a corner where the failure to pass a bill -- any bill -- is viewed as a blow to President Obama and an affront to labor unions and other powerful constituencies that back the changes. In my view, the backlash will not only strike House "Blue Dogs" and Senate moderates who vote for the bills. It will hit liberal Democrats running in Democrat-friendly states and districts, as long as the GOP is smart and nimble enough to put up strong, appealing candidates. For example, New York's appointed junior Senator, Kirsten Gillibrand, may face Rudy Giuliani next year. If so, Rudy will not be shy about positioning himself as pro-senior and pro-Medicare, as Gillibrand tries to explain away her vote for some $500 billion in Medicare cuts.

That won't be easy, since the cuts will have a real and demonstrable negative impact, as the federal agency that administers Medicare reported a few days ago.

According to the CBO, these are the big blows to Medicare as we know it in the Senate bill:

• Permanent reductions in the annual updates to Medicare’s payment rates for most services in the fee-for-service sector to "save" $192 billion over 10 years.

• Cutting $118 billion from Medicare Advantage programs that now enroll more than 13 million seniors over the 2010–2019 period.

• Reducing Medicaid and Medicare payments to hospitals that serve a large number of low-income patients by $43 billion -- about $22 billion from Medicaid and $21 billion from Medicare.

In addition, the bill would create a new agency -- the Independent Medicare Advisory Board -- that would be required to "recommend changes to the Medicare program to [further] limit the rate of growth in that program’s spending. Those recommendations would go into effect automatically unless blocked by subsequent legislative action." In other words, a panel of bureacrats, not accountable to anyone, would propose further cutbacks in Medicare that Congress would not have to vote on and the President would not have to sign into law, thus insulating the politicians from blame for the cuts.

All in all, if the Democrats pass either the Senate or the House bill with cuts of this kind into law, they have to be crazy if they think they will avoid the wrath of the senior voters.

What do you think? Post a comment.

Senate to seniors: Screw you!

Harry Reid claims cutting $400 billion from Medicare makes it "stronger"

Senate Majority Leader Harry Reid finally rolled out his health care "floor" bill late Wednesday, and to no one's surprise, roughly half the claimed $838 billion cost over 10 years will be paid for by slashing more than $400 billion from Medicare.

Like the bill already approved by the House of Representatives, Reid's bill would gouge $118 billion from Medicare Advantage programs, which will virtually eliminate this popular managed care option chosen by some 13 million senior citizens. (How's that for keeping Obama's promise, "If you like your current insurance and your current doctor, you won't have to change"?)

Also like the House bill, the proposed cuts are presented as reductions in future cost increases. But commenting on the House version, a report issued a few days ago from the non-partisan Centers for Medicare and Medicaid Services (CMS), the agency that administers Medicare and Medicaid, confirmed that the cuts will reduce Medicare benefits and run a real risk of limiting seniors' access to care by reducing Medicare reimbursements to hospitals and doctors, driving up the numbers of providers who decline to accept Medicare patients. Now, Reid proposes that the Senate follow suit and screw seniors.

Of course, millions of seniors already have trouble finding primary care physicians in the midst of an acute shortage that will only get worse as the rolls of insured are expanded by the millions. And all too many top-notch specialists shun Medicare patients as it is. That's a big attraction of the Medicare Advantage programs that Congress wants to eliminate. They ensure access to a managed care network.

There is a lot of merit to the reform that Democrats are trying to push through. But there is nothing "progressive" about robbing Peter to pay Paul -- i.e., slashing Medicare in order to pay for fully half the cost of expanding coverage to others. Republicans are charging that the Medicare cuts will never be made, that it's all a sham to parade the bill as "deficit neutral," and that the Democratic Congress will keep deferring the cutbacks after the bill passes. Maybe, but for seniors, that would be betting their future care on the odd proposition that Reid, Nancy Pelosi and scores of other Democrats in Congress are all blatant liars. And what if the GOP retakes control of Congress by 2012? Republicans have been talking about curbing "entitlements" like Medicare and Medicaid for decades. Won't today's Democratic majorities have done their work for them?

What's your take on the Medicare cuts? Post a comment.