ABC's Johnathan Karl reports
The $716 billion in Medicare cost savings in the health care law includes $415 billion in reduced future payments to providers (primarily hospitals, Medicare Advantage, home care, and about $20 billion in fraud prevention). These are only “cuts” in the way Washington defines “cuts” — the payments to providers continue to rise, but at a slower rate.
Now flashback to 2005. To help pay for the new Medicare prescription drug benefit, the Bush administration proposed essentially the same thing: reducing future payments to Medicare providers.
The only real difference: The Bush Medicare cost savings end up being only about $16 billion over five years — a trifling sum when compared with the $415 billion in reduced payments included in the Obama administration’s health care law.
The future President and future Gaffe-master-in-Chief joined their fellow progressives in sending a letter to warning the reduced planned payments to Medicare providers could limit seniors’ access to quality care (just like Romney and Ryan are saying today).
“Medicare provides vital insurance to millions of Americans,” said the letter, dated Jan. 31, 2005. “The program does face long-term cost pressures as a result of the rising cost of health care, which is affecting all types of health insurance. However, cutting reimbursement to providers who serve our seniors could limit their access to services.”So its time to ask President Obama, SCHMOTUS Biden, and CREEP, who exactly is lying. Were the Democratic Party standard-bearers lying in 2005, or are they lying today?
“Overall Medicare profit margins for hospitals are projected to be minus 1.5 percent this year, meaning hospitals are already losing money by treating Medicare patients,” said the letter.
The full letter follows:
ObamaBidenMedicare_05 01 31
You can find the rest of Karl's Report Here