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Obama's Medicare Fear Mongering Will Drown in the Facts

In the Majority Wrote: Aug 17, 2012 10:32 AM
"The $716 billion is only a projection of how Obamacare reduces the rate of growth in Medicare spending," Exactly. Newt Gingrich, when he was Speaker of the House, argued forcibly that cutting the rate of growth is NOT a cut. I guess Republicans believe that cutting the rate of growth is fiscally prudent if Republicans do it, and a cut if Democrats do it. Besides, the savings come from stopping the overpayments to the Medicare Advantage Plans. The overpayments (begun in the Bush administration) were designed to lure private insurers into Medicare; it guarantees them 20% profits; without that guarantee, for-profit private insurers refused to enter the Medicare Advantage market. That's why both Obama and Ryan plan stop overpayments.
Analysts may be correct that the presidential election won't primarily turn on entitlements reform, but by choosing Paul Ryan as his running mate, Mitt Romney can, contrary to conventional wisdom, make it a winning issue and lay the foundation for a reform mandate when he wins.

Besides, the economy and entitlements are wholly integrated issues: We cannot ultimately fix the economy long term without entitlement reform, and we can't balance the budget or retire the debt without a growing economy.

Democrats appear jubilant about the Ryan pick, believing his close association with entitlement reform provides an opening...