WASHINGTON -- Democrats laid out additional details on Friday of their plans to cut the deficit, signaling they would be willing to negotiate some Medicare cuts on the provider side as part of a deal to raise the debt ceiling this summer.
Sen. Chuck Schumer (D-N.Y.) and Rep. Chris Van Hollen (D-Md.) told reporters they would be willing to look at "delivery system reform" of Medicare, which would change the way providers on the senior health care system are paid. Although it could be positive for negotiations, the move could give Democrats less political cover for hammering Republicans on the Rep. Paul Ryan (R-Wis.) budget plan, which would transform Medicare into a voucher-like system for future seniors.
"There are three approaches: One is the Republican approach to end Medicare as we know it, transfer it all to insurance companies, which will not reduce costs, it will simply shift costs to beneficiaries," Schumer said on a call with reporters. "Second is to do nothing. We reject both of those."
Instead, Schumer said the Democrats will push for changes to the "delivery side" of Medicare, such as implementing more information technology and putting more emphasis on prevention.
"We believe that Medicare provides very good health care but it does it inefficiently," he said. "The way to bring savings out of Medicare while at the same time preserving the benefits is to make it more efficient in terms of the delivery system."
Democrats have consistently rebuked Republicans for voting to change Medicare using the Ryan plan, meaning it may be a political loss to allow for Medicare changes themselves. But Schumer and Van Hollen argued that Democrats are in a good political position in debt ceiling talks, particularly after Republican representatives in the talks quit on Thursday.
http://www.huffingtonpost.com/2011/06/24/schumer-medicare-debt_n_884007.html