[Vision2020] McCain to Cut Medicare & Medicaid

[Saundra Lund]

For those wondering how in God's green earth McCain's "shell game" health
care plan could possibly be budget neutral, here's how:

OCTOBER 6, 2008
McCain Plans Federal Health Cuts 
Medicare, Medicaid Spending Would Be Reduced to Offset Proposed Tax Credit
By LAURA MECKLER

John McCain would pay for his health plan with major reductions to Medicare
and Medicaid, a top aide said, in a move that independent analysts estimate
could result in cuts of $1.3 trillion over 10 years to the government
programs.

The Republican presidential nominee has said little about the proposed cuts,
but they are needed to keep his health-care plan "budget neutral," as he has
promised. The McCain campaign hasn't given a specific figure for the cuts,
but didn't dispute the analysts' estimate.

In the months since Sen. McCain introduced his health plan, statements made
by his campaign have implied that the new tax credits he is proposing to
help Americans buy health insurance would be paid for with other tax
increases.

But Douglas Holtz-Eakin, Sen. McCain's senior policy adviser, said Sunday
that the campaign has always planned to fund the tax credits, in part, with
savings from Medicare and Medicaid. Those government health-care programs
serve seniors, poor families and the disabled. Medicare spending for the
fiscal year ended Sept. 30 is estimated at $457.5 billion.

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