The supercommittee did accomplish something. Sort of. Cuts to Medicare are being taken seriously and are, it seems, on the front burner now. Democrats insist on a balanced approach, the balance being tax-excuse-me-revenue increases. The New York Times has a pretty good summary of what, when, how, etc. An excerpt:
Alice M. Rivlin, who was budget director for President Bill Clinton, had urged the deficit panel to establish an insurance exchange for Medicare beneficiaries. Private plans would compete with the traditional Medicare program and would have to provide at least the same benefits. The federal contribution in each region would be based on the cost of the second-cheapest option, whether that was a private plan or traditional Medicare.
Mr. Obama’s health care law provides “premium support” for people below age 65. The government will offer subsidies, in the form of tax credits, to help people buy coverage marketed by private carriers on an insurance exchange.
If this approach works for commercial insurance under the new law, it could allay concerns about similar changes to Medicare. ......The Congressional Budget Office estimates that the automatic cuts will trim $123 billion from Medicare over 10 years. But since the cost of the program is still expected to total more than $7 trillion in those years, lawmakers are likely to continue the frantic search for savings. ...NYT
