Obama Offers Medicare Cuts
As long as GOP is ready to raise taxes
By Rob Quinn, Newser Staff
Posted Jul 5, 2011 5:50 AM CDT
As part of budget negotiations, Democrats are considering allowing Medicaid to use its bulk buying power to negotiate lower prescription drug prices   (Getty Images)

(Newser) – Medicare and Medicaid are on the table and President Obama has told Republican lawmakers he's ready to start cutting tens of billions of dollars from the programs to reduce the federal deficit—as long as Republicans are prepared to accept tax raises in return. "We are very willing to entertain savings in Medicare,' Sen. Chuck Schumer says. "Medicare gives very good health care very inefficiently."

Administration officials have signaled that they are willing to accept cuts of up to $100 billion over the next decade, including cuts to payments to hospitals for uncollectable debt and doctor training. Health care industry lobbyists have launched an advertising blitz to prevent the cuts. "Congress smells blood," the chief lobbyist for nonprofit nursing homes tells the New York Times.

View 2 more images
More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Obama, Democrats Offer to Slash Medicare in Exchange for Tax Raises is...
10%
2%
5%
57%
18%
8%
Show results without voting
You Might Like
Comments
Showing 3 of 41 comments
veraleake
Jul 6, 2011 4:04 AM CDT
You may look at the premium amount and think that there is no way that you can afford it. You cannot afford to be without health insurance! shop around you may find it easy to find an affordable premium, I always find health insurance through "Penny Health" network.
OWLWOMANXXXX
Jul 5, 2011 3:34 PM CDT
he loses my vote if he cuts medicare and not tax the rich more.....where is this guys backbone?grrrrrrrrrrrrrrrr
anchower
Jul 5, 2011 1:23 PM CDT
Republicans love to crow about "American exceptionalism." But the one way that America actually is exceptional--its ability to run perpetual deficits thanks to the unparalleled safety of Treasury securities for creditors like China--they want to deep-six by driving the country to (the brink of) default and encouraging foreign governments to find stabler investments. Assholes.