The Budget Fight: It Volition Endure A Long Hot Summer, In Addition To Fall, In Addition To Winter…

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Title : The Budget Fight: It Volition Endure A Long Hot Summer, In Addition To Fall, In Addition To Winter…
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The Budget Fight: It Volition Endure A Long Hot Summer, In Addition To Fall, In Addition To Winter…

The skillful tidings is that Democrats too Republicans are finally seriously engaged over the country’s financial crisis.

And, each side is presenting a starkly dissimilar shape for the voters to pick out from.

When it comes to the wellness tending entitlements, Republicans desire to cutting the wellness tending entitlement benefits too thus ease the pressure level on federal spending.

Obama wants to largely instruct out the programs inwards house too heighten taxes--about $1 inwards taxation increases for $2 every dollars inwards cuts.

Neither touches Social Security. Obama wants to brand cuts to the Pentagon's budget—the Republicans don't.

The solution Republican House Budget Chair Paul Ryan (R-WI) has presented for controlling Medicare too Medicaid costs is almost solely a toll shift strategy. While I would concur that agency testing too defined contribution approaches to making wellness tending consumers to a greater extent than toll witting should live component of the solution, this is virtually all Ryan is proposing.

I worry that Ryan too the Republicans are but sticking futurity seniors amongst the problem—uncontrolled wellness tending costs—without doing anywhere close plenty to exercise a to a greater extent than toll effective wellness insurance too delivery arrangement for them to convey a gamble of finding affordable wellness care.

I worry less virtually the Republican proposal to block grant Medicaid payments to the states. While this is but some other toll shift strategy that limits federal spending at the expense of the states, at to the lowest degree the states convey the mightiness (and so the incentive) to implement Medicaid toll containment policies--state past times state--that laissez passer on them the gamble of truly reducing costs too delivering affordable care. United States of America also convey to residual their budgets every year--a existent incentive the feds don't have!

The President said all of the correct things virtually wellness tending inwards his budget too debt phonation communication yesterday. But this President has been maxim the correct things, field telling us nosotros can’t kicking the entitlement tin downward the route whatever longer, since he took office. And, so he but kicks the entitlement tin downward the road.

The only promising wellness tending proposal I heard from the President yesterday was his proposal to strengthen the Medicare Cost Board (the IPAB), which the Affordability Act created lastly year. But fifty-fifty that was far to a greater extent than tepid a proposal than it needs to be. He would only sharpen the trigger—invoking the Board if spending began to locomote past times gross domestic product growth past times half a pct rather than the electrical current i percent. What he truly needed to exercise was expand the breadth of its powers, to include things similar the exercise goodness structure, too to instruct it working sooner—it right away can’t deport upon wellness tending spending earlier 2015—2020 for hospitals.

Neither the Republicans nor the President convey done anything close plenty inwards their proposals to counter the chronic unsustainable ascent inwards wellness tending spending that is but going to popular off on without systemic modify to the way providers too insurers are paid.

Republicans pretty much but shift costs to seniors too the states. Obama pretty much but shifts the costs of these unaffordable programs to the “rich” through bigger taxes.

I dubiety Ryan's Medicare toll shift strategy has much of a gamble politically. The President volition convey all he tin exercise to maintain both Democrats too Republicans, nether pressure level from the provider particular interests, from repealing the Medicare toll board equally it right away exists.

Whatever the political outlook for either side, nosotros are virtually to meet some other budget too deficit showdown/crisis around Memorial Day—this i over raising the debt ceiling.

The ii sides couldn’t convey to a greater extent than dissimilar approaches to the problem—but neither truly convey solutions.

When the ii sides instruct past times what volition chop-chop instruct the debt ceiling crisis—likely no to a greater extent than smoothly than they did the recent regime shut-down crisis over the 2011 budget, so it volition live on to the 2012 budget struggle too the same stark differences too lack of existent wellness tending solutions.

This summer's debt limit, too the fall's 2012 budget confrontations, volition live herculean fights.

Too bad these fights won’t live over how to solve the problem.


More on the Republican Health Care Proposal: The “Path to Prosperity”—Where’s the Health Care Cost Containment?

On controlling costs: What It Will Take to Bring America’s Health Care Costs Under Control––We Have to Change the Game


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