Dec. 7, 2012
As Democrats demand tax concessions from Republicans to avert a collision over the government’s budget, Senate Democratic leaders are signaling that they may be willing to trade an entitlement program overhaul to secure a deal to rein in the national debt.
Dick Durbin of Illinois, the second-ranking Senate Democrat, said he might reluctantly be open to expanding means- testing for Medicare eligibility -- charging more to higher- income seniors. New York Senator Chuck Schumer said he wouldn’t rule out changing entitlements, challenging Republicans to come up with specific proposals...
The Medicare change could save the federal government more than $100 billion while increasing health-care costs to senior citizens, states and employers. People age 65 and older could pay an extra $2,000 for health insurance if they are excluded from Medicare, according to the nonpartisan Kaiser Family Foundation.
The chained CPI inflation method to determine annual cost- of-living adjustments for millions of Americans was a central feature of both the plan presented by the co-leaders of Obama’s 2010 debt commission and a blueprint by the Bipartisan Policy Center’s Debt Reduction Task Force.
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Economic Policy Project