Dems’ Alternate Plan for Medicare: Slash Benefits

March 30, 2011

FYI, a similar version of this release below went out to the following districts: Jason Altmire (PA-04), John Barrow (GA-12), Sanford Bishop (GA-02), Tim Bishop (NY-01), Dan Boren (OK-02), Leonard Boswell (IA-03), Bruce Braley (IA-01), Dennis Cardoza (CA-18), Russ Carnahan (MO-03), Ben Chandler (KY-06), Gerry Connolly (VA-11), Jim Cooper (TN-05), Jim Costa (CA-20), Mark Critz (PA-12), Henry Cuellar (TX-28), Peter DeFazio (OR-04), Joe Donnelly (IN-02), Raul Grijalva (AZ-07), Martin Heinrich (NM-01), Brian Higgins (NY-27), Jim Himes (CT-04), Maurice Hinchey (NY-22), Ruben Hinojosa (TX-15), Tim Holden (PA-17), Rush Holt (NJ-12), Jay Inslee (WA-01), Steve Israel (NY-02), Bill Keating (MA-10), Dale Kildee (MI-05), Ron Kind (WI-03), Larry Kissell (NC-08), Rick Larsen (WA-02), David Loebsack (IA-02), Jim Matheson (UT-02), Carolyn McCarthy (NY-04), Mike McIntyre (NC-07), Jerry McNerney (CA-11), Michael Michaud (ME-02), Brad Miller (NC-13), Bill Owens (NY-23), Frank Pallone (NJ-06), Ed Perlmutter (CO-07), Gary Peters (MI-09), Collin Peterson (MN-07), Chellie Pingree (ME-01), David Price (NC-04), Nick Rahall (WV-03), Loretta Sanchez (CA-47), Kurt Schrader (OR-05), Heath Shuler (NC-11), Adam Smith (WA-09), Betty Sutton (OH-13), John Tierney (MA-06), Niki Tsongas (MA-05), Pete Visclosky (IN-01), Tim Walz (MN-01), Anthony Weiner (NY-09), David Wu (OR-01), John Yarmuth (KY-03)

Rahall’s Alternate Plan for Medicare: Slash Benefits
Democrats’ Budget Lets Medicare Go Bankrupt, Requiring Large Cuts in Benefits

Washington — As President Obama and Democrats like Nick Rahall in West Virginia continue to stand by budget proposals which conspicuously omit any plans to protect Medicare from bankruptcy, the other outcome they end up embracing is an immediate 15 percent cut in benefits. As President Obama and his Democrat allies like Rahall continue to stand by the unsustainable status quo instead of proposing solutions, they end up accepting the fact that benefits would have to be slashed 15 percent in order to continue funding the program when it runs out of cash.

As Nick Rahall struggles to protect the big-spending status quo alongside his Democrat leaders in Washington, the consequences are becoming more and more apparent,” said NRCC Communications Director Paul Lindsay. “Rahall continues to embrace the Democrat budget plan introduced by President Obama which conspicuously avoids any solutions to save Medicare, which would require a 15 percent cut in benefits in order to avoid insolvency. As his West Virginia constituents are noticing, Rahall is more focused on defending his party’s increasingly unpopular policies rather than listening to voters who are demanding action.”

Medicare will run out of cash in 2029, requiring a 15 percent cut in benefits to continue the program:

“The projected HI deficit over the next 75 years is 0.66 percent of taxable payroll, down from last year’s estimate of 3.88 percent. Eliminating this deficit would require an immediate 23 percent increase in payroll taxes or an immediate 15 percent reduction in benefits—or some combination of the two. Delaying action would require more drastic tax increases or benefit reductions in the future.” (“Issue Brief: Medicare’s Financial Condition: Beyond Actuarial Balance,” American Academy of Actuaries, Nov. 2010)

And yet the Democrats’ budget purposefully omits any plans to save Medicare:

“Yet the biggest shortcoming is that it all but ignored the most important long-term financial challenge, which is the growing cost of entitlements such as Medicare and Medicaid.” (Editorial, “Obama’s overly tame budget,” Los Angeles Times, 2/15/11)

In continuing to support the Democrat budget plan which ignores protecting Medicare from bankruptcy, Nick Rahall is embracing the alternative which is slashing Medicare benefits by 15 percent in order to keep the program running. Unfortunately, this is yet another example of where Rahall prioritizes following Democrat Party orders over the needs of his constituents in West Virginia.

Dems’ Alternate Plan for Medicare: Slash Benefits By 15% http://ow.ly/4pxse #MadeinWDC

###