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AP: Restoring Medicare Cuts Will Kill Medicare

From the Associated Press:

Undoing Obama Medicare cuts may backfire on Romney

By RICARDO ALONSO-ZALDIVAR | Thursday August 16, 2012

WASHINGTON (AP) – GOP presidential candidate Mitt Romney’s new promise to restore the Medicare cuts made by President Barack Obama’s health care overhaul law could backfire if he’s elected.

The reason: Obama’s cuts also extended the life of Medicare’s giant trust fund. By repealing them, Romney would move the program’s insolvency eight years closer, toward the end of what would be his first term in office.

Instead of running out of money in 2024, Medicare’s trust fund for inpatient care would go broke in 2016 without the cuts, according to estimates by the program’s own experts.

That could leave a President Romney little political breathing room to execute his own Medicare plan. Outside experts say it could force deeper cuts, and sooner.

This is simply preposterous. How does Obama cutting $716 billion dollars from Medicare? How can restoring those cuts bring its insolvency eight years closer?

This is voodoo economic. This is also voodoo journalism.

By the way, how come we have never gotten any articles like this about Obama’s plan? Even though it not only cuts $716 billion from Medicare, it counts that same money twice.

The Romney campaign says there’s no problem with the candidate’s pledge. "The idea that restoring funding to Medicare could somehow hasten its bankruptcy is on its face absurd," said spokeswoman Andrea Saul.

Nothing is too absurd for the AP. Not when they can gin up a headline that they know some ‘low information’ voters might believe.

Campaign officials say arcane federal accounting rules create a false sense of security about Medicare. They allow savings like Obama’s cuts to also count toward funding other programs or reducing the overall deficit…

No, the accounting rules don’t allow it. Obama is just doubling counting.

But Obama’s cuts were not directly aimed at Medicare’s 48 million beneficiaries; instead they affect hospitals, insurers, nursing homes, drug companies and other service providers. Simply undoing the cuts would restore higher payments to those service providers. And that would cause Medicare to spend money faster…

So service providers are going to continue to provide the same level of service, while getting $716 billion dollars less for their efforts. We don’t think so.

This cut was aimed squarely at the beneficiaries. Who have paid into the program for services, only to have them slashed by Obama.

The Obama campaign was quick to seize on the issue.

"The fact of the matter is, what Romney is proposing now is to roll all that back, which would mean that Medicare would reach insolvency eight years earlier, which would mean that seniors would lose benefits," David Axelrod, a senior political adviser to Obama, said Thursday on MSNBC’s "Morning Joe." …

In other words, the Obama campaign has invented this latest lie and the Associated Press is reporting it as if it is actual news.

Again, reducing payments to service providers to the tune of $716 billion is going to reduce benefits. Only a professional liar like David Axelrod could pretend otherwise.

Obama "has taken $716 billion out of the Medicare trust fund," Romney told supporters. "He’s raided that trust fund.

"And you know what he did with it? He used it to pay for Obamacare, a risky, unproven, federal takeover of health care," Romney continued. "And if I’m president of the United States, we’re putting the $716 billion back." …

In fact, Obama has taken $716 billion dollars that people have paid into Medicare, and given it to people who have not paid a dime for their health insurance.

All in the name of ‘fairness.’

Despite its long-term financial problems, Medicare has been fairly stable since the passage of Obama’s health care law. Premiums have remained about the same, reflecting a national slowdown in medical inflation.

Again, no lie is too big for the AP when it is in the service of Obama’s re-election.

However, the brunt of the spending cuts has yet to be felt. Medicare’s own economic forecasters have warned the cuts may prove politically unsustainable…

Notice how the AP buries this little detail at the bottom of its so-called news article.

This article was posted by Steve on Tuesday, August 21st, 2012. Comments are currently closed.

One Response to “AP: Restoring Medicare Cuts Will Kill Medicare”

  1. Right of the People says:

    “Despite its long-term financial problems, Medicare has been fairly stable since the passage of Obama’s health care law. ”

    That’s because the real taxing doesn’t begin until 2014 then Medicare will be gutted so Barry the Bozo can force his crap down our throats.

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