White House Continues Playing “Let’s Make a Deal” With the GOP on Social Security and Medicare Benefit Cuts

Just two months ago, the Obama White House vowed it wouldn’t be sucked into debt ceiling negotiations with Republicans again. “Thank goodness” we all said, since that debacle ultimately led us to the ongoing budget mess and sequester which continues to hurt American families nationwide.

“Gene Sperling, director of the National Economic Council, told reporters that the president “simply is not going to negotiate on the debt limit.” – The Hill

Hmmm….Guess what? The White House has been meeting behind closed doors with Republicans ever since then doing exactly that…negotiating with Republicans about which middle-class benefits will be cut in order to head off another GOP led hostage taking over the debt ceiling. Clearly, past is prologue.

Here’s what the National Journal reports:

“At least a dozen Republican senators are regularly meeting with President Obama’s top aides in an attempt to plot a way forward on the looming fiscal challenges facing leaders this fall, senators involved in the meetings tell National Journal.

The meetings, which began after Obama hosted GOP senators for dinner earlier this year, are the first sign that Democrats and Republicans are in talks to strike a deal that would reduce the deficit and reform entitlements and taxes.

Republicans plan to use the debate over raising the debt limit to force Democrats to cut spending—a negotiation Obama has said he won’t engage in. But these meetings demonstrate that the president is in fact engaging Republicans in a broader discussion about debt and spending.

An administration official said White House aides have made clear to Republicans that the president’s offer from December—including $600 billion in new tax revenue for $400 billion in Medicare and other health care cuts—still stands.

Republicans are open to $600 billion in revenue, Burr said, but want to see it come from a mix of entitlement and tax reform. And the GOP opposes Obama’s $400 billion in Medicare cuts, arguing they want more structural reforms.”

Just in case you’ve forgotten, those “structural reforms” actually end traditional Medicare and put seniors at the mercy of private insurance companies, dramatically increasing their health care costs and limiting their choice of doctors. What Republicans want is passage of the Ryan/GOP budget, which is nothing more than “CouponCare” which gives seniors a coupon to go buy their health coverage from private insurance companies. The American people don’t support “CouponCare” yet the Republicans in the House have introduced this plan three times and clearly hope President Obama will give them what the Senate will not.

And then there’s President Obama’s plan for Social Security and Medicare, which isn’t to be applauded either. He proposes cutting Social Security benefits for current and future retirees, veterans and the disabled plus raising taxes on the middle class through the Chained CPI.

“Cutting benefits by adopting the chained CPI would cut the COLA by 3% for workers retired for ten years and 6% for workers retired for twenty years. This cut targets both current and future retirees. Three years after enactment, this translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75. While supporters claim the chained CPI is more accurate; you have to ask yourself, if this chained CPI really is more accurate, then why the need to offer an incremental benefit “bump” to some beneficiaries? The answer is simple. The chained CPI does not accurately measure these groups’ expenses; in fact, it makes most of the same errors as the current formula and adds a few. Adoption of this new formula is really about cutting benefits and raising taxes on average Americans to reduce the deficit.” Max Richtman, NCPSSM President/CEO

In a letter to the White House Max also told the President:

“The ‘chained CPI’ is not a ‘technical tweak,’ and no amount of rationalization can make it so. In reality, the chained CPI is a benefit cut for the oldest and most vulnerable Americans who would be least able to afford it. To offer to trade it away outside the context of a comprehensive Social Security solvency proposal ignores the fact that Social Security does not even belong in this debate because it does not contribute to the deficit. Cutting Social Security benefits to reduce the deficit is unacceptable to the vast majority of Americans across all ages and political affiliation.”

On Medicare, President Obama also supports even further means-testing which will ultimately hit middle-class families, not just “wealthy seniors.”

“Proposals to expand Medicare means testing include increasing income-related premiums under Medicare Parts B and D until 25 percent of beneficiaries are subject to higher premiums. A study from the Kaiser Family Foundation found that this would affect individuals with incomes equivalent to $47,000 for an individual and $94,000 for a couple if fully implemented in 2014 – meaning it would reach many middle-income Americans.”

So, everything old is new again. President Obama is negotiating with the GOP all over again and middle-class benefit cuts are the only thing we know for sure is on the table. You have to wonder, where are Congressional Democrats?!