In a deal reducing federal government spending by roughly $38 billion and cutting national deficits by $4.4 trillion over the next decade, U.S. House of Representatives passed the GOP 2012 budget proposal last Friday.
The new proposal, crafted by Budget Committee Chairman Paul Ryan, R-Wisconsin, takes heavy blows to Medicare and Medicaid – two social policy programs long considered 'politically untouchable'.
Ryan's "Path to Prosperity" would cease direct bill payments to Medicare recipients starting in 2022. Instead, one must choose a plan from government subsidized private providers. Under Ryan's plan, vouchers would be provided for private health insurance in amounts intended to increase the average yearly health care cost. In the end, Ryan's plan would cause more financial burden on our senior citizen's.
Medicaid, on the other hand, which provides health care for millions of disabled and poor people, would be newly funded by a series of block grants mandated to the states. The claim is that this conversion would give governors more flexibility, however critics argue states will only receive less funding for the program.
Not surprisingly, every House Democrat opposed the measure. Good thing Ryan’s plan has almost zero chance of clearing the Democratic-controlled Senate.
I think Congress should take a second look at President Obama's deficit reduction plan that he divulged last week. Mr. President's blueprint would cutting deficits by $4 trillion over the next 12 years, without enacting any significant changes in Medicare and Medicaid entitlements.