Medicare Part D: Republican Budget-Busting
The key parts are:
1) Republicans were keen to make sure that the legislation enacted was theirs, because the Democrats were certain to include cost containment for drugs in their legislation. It was widely believed that if the federal government used its buying power to pressure drug companies to cut drug prices, the cost of providing drugs to Medicare recipients would be substantially reduced.
But forcing down drug prices would diminish the drug companiesâ profits and Republicans were adamantly opposed to that. Consequently, despite their oft-repeated opposition to new entitlement programs, they got behind the new drug benefit, now known as Medicare Part D, and made sure there was no cost-containment provision.
From the beginning, Republicans decided to forgo dedicated financing for Part D. Except for trivial premiums paid by recipients, the entire cost would fall on taxpayers. Moreover, Republicans refused to raise the Medicare tax or cut spending to cover Part D. Hence, the deficit increased by virtually the entire cost of the program.
Through 2012, Medicare Part D added $318 billion to the national debt (see âGeneral Revenueâ on Page 111 in the 2013 Medicare trustees report). That same report projects that Medicare Part D will add $852 billion to the debt over the next 10 years.
2) The record also shows that such âdeficit hawksâ as the current House speaker, John Boehner of Ohio; the current House majority leader, Eric Cantor of Virginia; and the current House Budget Committee chairman, Paul Ryan of Wisconsin, voted for Medicare Part D all the way. Although out of Congress, the former speaker, Newt Gingrich, wrote a commentary in The Wall Street Journal on Nov. 20, 2003, urging all Republicans to vote yes.
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The Party of the Stupid are only concerned about deficits when the other party has the power.
The key parts are:
1) Republicans were keen to make sure that the legislation enacted was theirs, because the Democrats were certain to include cost containment for drugs in their legislation. It was widely believed that if the federal government used its buying power to pressure drug companies to cut drug prices, the cost of providing drugs to Medicare recipients would be substantially reduced.
But forcing down drug prices would diminish the drug companiesâ profits and Republicans were adamantly opposed to that. Consequently, despite their oft-repeated opposition to new entitlement programs, they got behind the new drug benefit, now known as Medicare Part D, and made sure there was no cost-containment provision.
From the beginning, Republicans decided to forgo dedicated financing for Part D. Except for trivial premiums paid by recipients, the entire cost would fall on taxpayers. Moreover, Republicans refused to raise the Medicare tax or cut spending to cover Part D. Hence, the deficit increased by virtually the entire cost of the program.
Through 2012, Medicare Part D added $318 billion to the national debt (see âGeneral Revenueâ on Page 111 in the 2013 Medicare trustees report). That same report projects that Medicare Part D will add $852 billion to the debt over the next 10 years.
2) The record also shows that such âdeficit hawksâ as the current House speaker, John Boehner of Ohio; the current House majority leader, Eric Cantor of Virginia; and the current House Budget Committee chairman, Paul Ryan of Wisconsin, voted for Medicare Part D all the way. Although out of Congress, the former speaker, Newt Gingrich, wrote a commentary in The Wall Street Journal on Nov. 20, 2003, urging all Republicans to vote yes.
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The Party of the Stupid are only concerned about deficits when the other party has the power.
