Obama’s Plan to Allow Panel to Curb Medicare Meets Bi-Partisan Opposition

By Harry Kelber

President Obama’s new deficit reduction plan, that would give an independent board full authority to cut spending on Medicare, has met with strong opposition from both Republicans and Democrats in Congress. Obama wants to expand the power of the 15-member Independent Payment Advisory Board. that would have the power to make sweeping changes in Medicare spending to reduce its costs, including the reduction of its benefits.

The plan has been met with opposition from almost all Republicans
and many Democrats, who fear that the board would assume powers
over spending cuts that are the responsibilities of Congress. Moreover,
lawmakers are unwilling to entrust an independent agency with
authority to make changes in Medicare, one of the nation’s most
important social programs, that serves millions of retired people.

Supporters of the President’s plan say that an independent board
would be  able to make tough decisions to cut Medicare or reduce
benefits, unlike politicians who, for political reasons, dare not.

Representative Paul Ryan, (Rep.-Wis), who is chairman of the
House Budget Committee, said: "Congress should not delegate
Medicare decision-making to 15 people appointed by the
President.” He added that under the President’s proposal, the
board could “impose more price controls and more limitation
on providers, which will end up cutting services to seniors.”

Both Parties Intend to Downgrade Medicare

Kathleen Sibelius, the secretary of the Health and Human
Services Department. said that an independent board would
“ensure that health costs are reduced,” She added: “The
board might not have to take action if the President’s other
proposals slow the growth of Medicare spending.”:

The Medicare board members will each serve six-year terms
and be paid a reported $160,300 a year. The White House
has not published their names. But it is safe to say that
Obama has not appointed any labor representative to the board.
Nor is there any evidence that the AFL-CIO asked to be
represented.

President Obama will be using his independent 15-member
board as an escape hatch to avoid responsibility for the
squeeze on Medicare funding that will leave millions of
retired people without needed medical assistance.

The Republican response is even more threatening. It
calls for slashing Medicare by 8.5 trillion dollars
between now and 2050 by replacing it with a voucher
system. Seniors will be left at the mercy of insurance
companies, with only an inadequate voucher to cover
their medical costs if they incur a serious illness.

* * * * *

The AFL-CIO should not leave it to the independent
tboard to make cuts in the funding of Medicare at their
own discretion. This is a matter that concerns the health
of every retired American and the millions of people
who should receive Medicare benefits when they
become eligible.

If there are countless billions to spend on two wars that
have been funded for 10 years (and are still being funded),
Congress ought to be able to find the money to keep Medicare
intact and improve it. -Harry Kelber