In his health care speech to a joint session of Congress earlier
this month, President Obama said that his proposed cuts to
Medicare "will ensure that you – America's seniors – get the
benefits you've been promised."
But Douglas Elmendorf, director of the Congressional Budget
Office, disagrees. He
testified yesterday that the proposed changes would "would
reduce the extra benefits that would be made available to
beneficiaries through Medicare Advantage plans." That is, the
privately-administered plans that will see a funding cut to help
pay for health care legislation.
I've been of two minds about the recent Medicare debate. On the
one hand, I worry about the long-term impact of the Republican
decision to make protecting Medicare from any cuts a focal point
of their opposition to health care legislation. Not only does it
distract from other arguments that attack the very idea of
government-run health care, but it helps perpetuate the third
rail status of a program that, if its growth is left unchecked,
will bankrupt the country. If Democrats are unable to touch
Medicare, then there's absolutely no hope that somewhere down the
line a conservative administration would be able to do so.
At the same time, I do think it's important to point out that
Obama is lying through his teeth when he says that cutting
Medicare by $500 billion to as much as $622 billion will have
absolutely no effect on anybody's benefits. Additionally, it
would be one thing if Obama were proposing these cuts as part of
a larger entitlement reform, but instead he's proposing them in
the name of creating a new entitlement.