FactWatch: Entitlement Reform
From the speech:
"Every member in this chamber knows that spending on entitlement programs like Social Security, Medicare and Medicaid is growing faster than we can afford. And we all know the painful choices ahead if America stays on this path: massive tax increases, sudden and drastic cuts in benefits, or crippling deficits."
Analysis:
What Bush didn't say is that he will soon have to propose another bill with painful choices. Under the terms of the 2003 law that created the Medicare prescription drug benefit, Bush must propose in the next three weeks a bill to bring Medicare spending that comes from general tax revenues (as opposed to the Medicare payroll tax) back down to 45 percent of total Medicare spending. And by law, those cuts can't come from increased taxes. That will mean some combination of cuts in benefits, payments to doctors and other providers of health care, and beneficiary premiums. Not likely to be popular in an election year. And also under the terms of that 2003 law, Congress will be required to debate (although not necessarily to pass) that legislation this year.
- Julie Rovner
9:50 PM ET | 01-28-2008 | permalink
