Is Obamacare a Budget Buster, Medicare Disaster, or Both?

Conn Carroll / December 24, 2009

This week National Journal Online asked their stable of health experts: Would the leading Democratic health care reform proposals result in a better or worse Medicare?

Heritage Foundation Vice President for Domestic Policy Stuart Butler responded:

On the face of it, the reform proposals would help ease the $37 trillion unfunded obligations of Medicare, making it a tad more viable for current and future seniors. But the savings on one credit card just become new liabilities on another. Moreover, if the key cuts actually went into place it would be a disaster for seniors. In the Reid bill, physician fees are to be cut more than 20 percent in 2011 and kept there indefinitely. That would cause docs to leave in droves and mean care cutbacks from those who remain. And Medicare’s chief actuary says payment rate cuts will cause up to 20 percent of Medicare hospitals to become unprofitable. Medicare Advantage, it’s true, would not cut to the bone, but there will be a significant erosion of benefits and far fewer plans available. (more…)