House Democrats are demoralized by the end game on the debt ceiling, and they have reason to complain that their votes are being taken for granted. But on the substance, their hard line on health benefits is riddled with contradictions: maintaining the status quo on Medicare preserves a benefit/contribution structure that is hardly progressive and that privileges upper income individuals arguably as much as the Bush tax cuts that the same Democrats want to repeal. At the same time, the Democratic Caucus has largely been silent on the expiration of federal Medicaid stimulus spending, and the state downsizing of Medicaid programs, two events that are compromising the availability of health care for low income patients.
Political games aside, means-testing elements of Medicare makes it a fairer, more progressive program. It also does not neutralize the issue for 2012: to the contrary, Democrats can argue that their adjustments to the program are a more responsible approach than the Ryan plan, which hands over Medicare to the private insurance market and risks substantial premium hikes for middle and low income seniors. Finally, controlling Medicare costs frees up resources to shore up Medicaid, which is in dire straits and ought to be a more compelling liberal priority.
(Cross-posted, with permission of the author, from Politico’s Arena)
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