Solutions to the fast approaching January 1, 2012 deadline that would result in steep Medicare cuts are beginning to emerge- the question becomes if any of these solutions can pass through all the appropriate channels and votes to provide relief before the cuts begin. Late Friday afternoon the House Republicans announced they had put together a plan that would replace a cut of more than 27 percent with one percent increases for 2012 and 2013, giving Congress time to come up with a more long-term cost savings solution.
Announced by Representative David Camp (R-MI), the Chariman of the House Ways and Means Committee and a member of the failed Super Committee originally tasked with finding ways to cut spending, the plan would increase Medicare premiums for higher income retirees and would cut funding for public health programs that was authorized by the Patient Protection and Affordable Care Act (PPACA)(P.L. 111-148).
The failure of the Super Committee has only highlighted the political differences on both sides of the aisle when determining where to cut spending. The question now becomes what, if any, success this plan has, and if it is rejected by House Democrats, what the next proposal will be from either side.