The Mudcat Café TM
Thread #115077   Message #2460146
Posted By: beardedbruce
08-Oct-08 - 09:39 AM
Thread Name: BS: $1.3 Trillion Cut In Medicare/Medicaid
Subject: RE: BS: $1.3 Trillion Cut In Medicare/Medicaid
OK, here it is:

"Mr. Holtz-Eakin said the campaign never intended to apply the payroll tax to health benefits. That means that most people would see a net tax cut, contrary to Sen. Obama's assertions. Only those with very rich benefits packages are likely to see a net increase in taxes. But it also means that Sen. McCain must fill a huge budget hole -- which the campaign says will come from cuts to Medicare and Medicaid.

The nonpartisan Tax Policy Center, a Washington think tank, estimates that the McCain plan would cost the government $1.3 trillion over 10 years. The plan would allow as many as five million more people to have insurance, it estimates.

Mr. Holtz-Eakin said the plan is accurately described as budget neutral because it assumes enough savings in Medicare and Medicaid spending to make up the difference. He said the savings would come from eliminating Medicare fraud and by reforming payment policies to lower the overall cost of care. He said the new tax credits will help some low-income people avoid joining Medicaid. The campaign also proposes increasing Medicare premiums for wealthier seniors.

Sen. Obama also would rely on some Medicare savings to pay for his health-care plan, which would offer subsidies to help consumers pay for premiums. The Tax Policy Center estimates that his plan would cost $1.6 trillion over 10 years and cover 34 million more people."




Note that Obama's cost is $1.6 trillion ( vice McCain's $1.3 trillion) but covers more additional people ( +34 million, vice McCain's +5 million)



So, it also follows that

"WSJ says Obama, to pay for his planned medical coverage, now plans to cut Medicare and Medicaid by $1.6 trillion over the next 10 years.