The Democrats: Most of Obama's proposed
Medicare cuts come from reducing payments to health care providers. He's said he'd veto any cuts to the level of Medicare benefits unless Congress also raised taxes on high earners. Among the benefit changes he's proposed: higher premiums for richer seniors and a $25 deductible increase for new enrollees in Part B. Obama has signaled some willingness to raise the eligibility age too.
On Social Security, Obama indicated last summer that he'd consider changing the formula for
cost-of-living adjustments, making them smaller.
The Republicans: The top candidates have embraced the
ideas of Rep. Paul Ryan, who wants to turn Medicare into a "premium support," meaning those under 55 now would get money to buy a private health plan. Gingrich and Romney say people could choose to stay in Medicare; Romney specifies that they may have to pay extra if Medicare coverage costs more than the premium support.
Romney and Santorum would raise the retirement age for Social Security. Overall, expect more entitlement cuts from the GOP. "It's a fundamental difference between the parties," says David Shulman of the UCLA Anderson Forecast.
Where you stand: MONEY readers have little faith in politicians when it comes to Medicare -- 62% trust neither party. You gave a similar answer on Social Security. But across the political spectrum, readers had strong preferences on how to fix both programs.
More than 80% agree Social Security taxes should be levied on incomes above $110,000 (earnings that aren't taxed now), and more than two-thirds say the eligibility age should be raised.
Almost two-thirds say wealthy retirees should pay higher Medicare premiums.
NEXT: Health care reform
