Medicare: too hot to handle
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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.
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How Medicare Works
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