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News > Economy
Medicare: too hot to handle
July 31, 1996: 3:56 p.m. ET

Republicans have dropped debate because of election year politics
From Correspondent Kelli Arena
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"The well has really been poisoned politically on this issue … it needs to be done. We need to save the Medicare trust fund, but with this being an election year and politics (have) become so prevalent, we question whether we can do it."
     ~ Rep. William Archer, (R-Texas)
Chmn., Ways and Means Committee
Strategists say Democrats are still winning voters by attacking the G.O.P's proposal to slow the growth of Medicare spending.
     As a part of a broader plan to balance the budget, Medicare reform was palatable. But once the balanced budget effort fell apart in Congress, Medicare reform became political suicide.
     Eddie Mahe, a Republican strategist, said, "(Seniors) can't see that anybody else is going to participate in balancing the budget," and they believe it's everyone's problem.
     Healthcare experts say it's better to fix Medicare sooner rather than later, but they believe there is wiggle room.
     "Medicare is projected to run out of money in 2001. That date of fiscal insolvency can be put off for several years by relatively incremental and modest changes, but when the baby boomers start retiring," said Henry Aaron of the Brookings Institution. "At that point, costs go up very rapidly, and more extensive action will be necessary."
     Republicans are hopeful that they can win back some momentum on the issue. But for now that senior vote is too important to do anything but grin and bear it. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.