Quote:
Originally Posted by
bionicarm http:///t/393144/well-done-mitt-you-took-it-to-him-last-night/20#post_3495265
Raiding Medicare to Pay for Obamacare?
Romney often says that Obama funneled $716 billion from Medicare to pay for the health care law — as he did at a campaign event in Mansfield, Ohio, on Sept. 10:
: He’s cut Medicare by $716 billion to pay for Obamacare.
Various incarnations of this claim have cropped up in Romney’s campaign speeches — including claims that Obama is “cutting” “funneling” or “raiding” $716 billion from Medicare to pay for the health care law. But Medicare money isn’t being taken away. The Affordable Care Act calls for a
$716 billion reduction in the growth of Medicare spending over 10 years, a move that — if successful — would keep the hospital insurance trust fund solvent for an additional eight years. Most of the $716 billion reduction —
about $415 billion — comes from a reduction in the future growth of payments to hospitals through Medicare Part A. And Medicare Part A’s trust fund,
as we’ve explained before, is in trouble financially. Without the spending reductions, the program is projected to be insolvent — paying out more than is taken in from payroll taxes — in 2016. With the reductions, that insolvency date is projected to be put off until 2024.
Furthermore, as
we explained in detail in our story “Medicare’s ‘Piggy Bank,’ “ Medicare doesn’t have $716 billion sitting around that could be “raided.” The president can’t take money out of the trust fund — which had
$244.2 billion at the end of 2011. Medicare holds its trust fund bonds and can cash them in as it needs to cover whatever isn’t paid by current payroll taxes. The health care law even increases the amount of tax revenue that will flow into the trust fund by imposing a 0.9 percent Medicare surcharge on certain high-income individuals.
If Part A doesn’t need to spend income it receives from payroll taxes immediately, Treasury issues Medicare a bond and the amount is credited to Medicare’s Part A trust fund. When Medicare wants to cash that bond, Treasury has to pay it, even if Treasury already spent the original money on something else.
And that’s where Romney has a point. The health care law counts those savings as money that can also cover other aspects of the law. But both the Congressional Budget Office and Medicare’s chief actuary have said that in practice, the $716 billion savings can’t cover two things at once.
Seriously? The payments to providers and medicare advantage are being reduced. You can post all the obama talking points you want but facts are facts. Without 0bama care there would be an additional 716 billion paid to providers and Medicare advantage accounts. Now you can either claim that reduction is going to extend the life of the Medicare system or that is covered the cost on 0bama care, not both. And like I said but cutting the payments to Medicare Advantage Accounts people with those will lose benefits. You can post all the nonsense you like but it doesn't change the facts.
You cited the washington post fact checker in another post. What do you think of this one?
http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/08/14/romneys-right-obamacare-cuts-medicare-by-716-billion-heres-how/
Romney’s right: Obamacare cuts Medicare by $716 billion. Here’s how.
