Fw: Arc and Debt Ceiling Agreement on Medicaid

[Guest guest]

Arc and Debt Ceiling Agreement on MedicaidFYI

Ellen

Ellen Garber Bronfeld

egskb@...

Debt Ceiling, Medicaid and Low-Income

programs

Wanted to make sure you all know some key points

about what the President fought for and won, because of all the work you all and

other groups have done around Medicaid and other programs meant to protect low

income families. Here's some key points:

At the bottom of these key points, you will fine

the overall fact sheet from the White House.

Key points:

1. Structural Reforms to Programs Like Social

Security and Medicare Are Not Included - And Could Only Occur Through Larger

Deficit Reduction Process With Revenues on the Table: The down-payment towards

deficit reduction in the bill does not include cuts to Social Security and

Medicare. To the degree that Republicans want to achieve structural reforms to

these programs, it would have to occur through a process - undertaken by the

bipartisan committee tasked with identifying an additional $1.5 trillion in

deficit reduction - in which revenues are also on the table. And by insisting on

a longer-term debt ceiling increase, the President would ensure that House

Republicans could not again use the threat of default in just a few months to

force severe cuts in Social Security, Medicare, and Medicaid.

2. The Agreement Would Create Pressure for a

Balanced Deal Because the Enforcement Mechanism Complements a Forcing Event

Already In Law - the Expiration of the Bush Tax Cuts: The Bush tax cuts expire

as of January 1, 2013, the same date that the spending sequester would go into

effect if additional deficit reduction were not achieved by the bipartisan

committee. These two events together would force balanced deficit reduction.

Absent a balanced deal, it would enable the President to use his veto pen to

ensure nearly $1 trillion in additional deficit reduction by not extending the

high-income tax cuts.

3. In Securing this Bipartisan Deal, the

President Rejected Proposals that Would Have Placed the Sole Burden of Deficit

Reduction on Low-Income or Middle-Class Families: While the President has been

willing to compromise to enact a serious downpayment on deficit reduction and

avoid default, he has stood firmly against proposals that would have placed the

sole burden on lower-income and middle-class families. This includes:

o Rejecting House Republican efforts to convert

Medicare into a voucher program and force seniors to pay $6,400 more for medical

care beginning in 2022.

o Rejecting deep cuts to Medicaid proposed by

House Republicans that would have - combined with repeal of the Affordable Care

Act - resulted in more than 50 million people, including seniors, children with

disabilities and low-income Americans, losing coverage

o Rejecting the deep discretionary spending cuts

in the House Republican Budget that would have put in jeopardy our economic

recovery by cutting education by 25%, clean energy by 70% and infrastructure

spending by 30%

o Rejecting cuts to other mandatory programs

like slashing the Supplemental Nutrition Assistance Program (food stamps) by an

amount that would require slashing the annual benefit for a family of four by

$1,760 or, alternatively, cutting 8 million currently eligible households from

food assistance

4. The Agreement Includes Historic Cuts to

Defense Spending: As part of the discretionary spending savings that provide a

down payment on deficit reduction as part of the agreement, the bill would

immediately enact caps that put us on track for $350 billion in security savings

over the decade. That represents savings of $500 billion relative to the

Budget, which had increased defense spending.

5. Consistent With Past Practice, The Trigger

Would Exempt Social Security, Medicaid, and Low-Income Programs: Consistent with

the bipartisan precedents established in the 1980s and 1990s, the trigger that

would go into effect if bipartisan compromise is not achieved it would exempt:

Ø Social Security

Ø Medicaid

Ø Medicare beneficiaries

Ø SCHIP

Ø Unemployment insurance

Ø SNAP (food stamps)

Ø Supplemental Security Income (SSI)

Ø Refundable tax credits like the Earned Income

Tax Credit and Child Tax Credit

Ø Other programs for low-income families like

Temporary Assistance for Needy Families (TANF)

In addition, while the trigger would include

Medicare, it would not have a direct impact on beneficiaries. Not only would

Medicare cuts only occur if Republicans accepted nearly $500 billion in

additional defense cuts, but the sequester would only come from payments to

providers and plans - not beneficiaries. In total, even under the worst-case

scenario where the trigger was enacted, the cuts to Medicare would be less over

10 years than the cuts proposed by the Gang of Six and the Bipartisan Fiscal

Commission.

6. In the Worst Case Scenario - If the

Trigger Goes Off - It Would Impose the Deepest Cut on Defense Spending: If the

Committee took no action, the trigger would impose an 8% cut on defense spending

- resulting in nearly $500 billion in cuts to defense on top of the $350

billion in the down payment. Defense would bear the largest burden of cuts under

the enforcement mechanism. It was fear of this same enforcement sequester that

drove President H.W. Bush and Republicans in Congress to accept the 1990

Budget Agreement which included revenue increases as well as spending cuts.

Overall Fact Sheet:

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE

July 31, 2011

BIPARTISAN DEBT DEAL: A WIN FOR THE ECONOMY AND

BUDGET DISCIPLINE

The debt deal announced today is a victory for

bipartisan compromise, for the economy and for the American people. The

agreement:

* Removes the cloud of uncertainty over

our economy at this critical time, by ensuring that no one will be able to use

the threat of the nation's first default now, or in only a few months, for

political gain;

* Locks in a down payment on significant

deficit reduction, with savings from both domestic and Pentagon spending, and is

designed to protect crucial investments like aid for college students;

* Establishes a bipartisan process to seek

a balanced approach to larger deficit reduction through entitlement and tax

reform;

* Deploys an enforcement mechanism that

gives all sides an incentive to reach bipartisan compromise on historic deficit

reduction, while protecting Social Security, Medicare beneficiaries and

low-income programs;

* Stays true to the President's commitment

to shared sacrifice by preventing the middle class, seniors and those who are

most vulnerable from shouldering the burden of deficit reduction. The President

did not agree to any entitlement reforms outside of the context of a bipartisan

committee process where tax reform will be on the table and the President will

insist on shared sacrifice from the most well-off and those with the most

indefensible tax breaks.

Mechanics of the Debt Deal

* Immediately enacted 10-year

discretionary spending caps generating nearly $1 trillion in deficit reduction;

balanced between defense and non-defense spending.

* President authorized to increase the

debt limit by at least $2.1 trillion, eliminating the need for further increases

until 2013.

* Bipartisan committee process tasked with

identifying an additional $1.5 trillion in deficit reduction, including from

entitlement and tax reform. Committee is required to report legislation by

November 23, 2011, which receives fast-track protections. Congress is required

to vote on Committee recommendations by December 23, 2011.

* Enforcement mechanism established to

force all parties - Republican and Democrat - to agree to balanced deficit

reduction. If Committee fails, enforcement mechanism will trigger spending

reductions beginning in 2013 - split 50/50 between domestic and defense

spending. Enforcement protects Social Security, Medicare beneficiaries, and

low-income programs from any cuts.

1. REMOVING UNCERTAINTY TO SUPPORT THE

AMERICAN ECONOMY

* Deal Removes Cloud of Uncertainty Until

2013, Eliminating Key Headwind on the Economy: Independent analysts, economists,

and ratings agencies have all made clear that a short-term debt limit increase

would create unacceptable economic uncertainty by risking default again within

only a matter of months and as S & P stated, increase the chance of a downgrade.

By ensuring a debt limit increase of at least $2.1 trillion, this deal removes

the specter of default, providing important certainty to our economy at a

fragile moment.

* Mechanism to Ensure Further Deficit

Reduction is Designed to Phase-In Beginning in 2013 to Avoid Harming the

Recovery: The deal includes a mechanism to ensure additional deficit reduction,

consistent with the economic recovery. The enforcement mechanism would not be

made effective until 2013, avoiding any immediate contraction that could harm

the recovery. And savings from the down payment will be enacted over 10 years,

consistent with supporting the economic recovery.

2. A DOWNPAYMENT ON DEFICIT REDUCTION BY

LOCKING IN HISTORIC SPENDING DISCIPLINE - BALANCED BETWEEN DOMESTIC AND PENTAGON

SPENDING

* More than $900 Billion in Savings over

10 Years By Capping Discretionary Spending: The deal includes caps on

discretionary spending that will produce more than $900 billion in savings over

the next 10 years compared to the CBO March baseline, even as it protects core

investments from deep and economically damaging cuts.

* Includes Savings of $350 Billion from

the Base Defense Budget - the First Defense Cut Since the 1990s: The deal puts

us on track to cut $350 billion from the defense budget over 10 years. These

reductions will be implemented based on the outcome of a review of our missions,

roles, and capabilities that will reflect the President's commitment to

protecting our national security.

* Reduces Domestic Discretionary Spending

to the Lowest Level Since Eisenhower: These discretionary caps will put us on

track to reduce non-defense discretionary spending to its lowest level since

Dwight Eisenhower was President.

* Includes Funding to Protect the

President's Historic Investment in Pell Grants: Since taking office, the

President has increased the maximum Pell award by $819 to a maximum award

$5,550, helping over 9 million students pay for college tuition bills. The deal

provides specific protection in the discretionary budget to ensure that the

there will be sufficient funding for the President's historic investment in Pell

Grants without undermining other critical investments.

3. ESTABLISHING A BIPARTISAN PROCESS TO

ACHIEVE $1.5 TRILLION IN ADDITIONAL BALANCED DEFICIT REDUCTION BY THE END OF

2011

* The Deal Locks in a Process to Enact

$1.5 Trillion in Additional Deficit Reduction Through a Bipartisan, Bicameral

Congressional Committee: The deal creates a bipartisan, bicameral Congressional

Committee that is charged with enacting $1.5 trillion in additional deficit

reduction by the end of the year. This Committee will work without the looming

specter of default, ensuring time to carefully consider essential reforms

without the disruption and brinksmanship of the past few months.

* This Committee is Empowered Beyond

Previous Bipartisan Attempts at Deficit Reduction: Any recommendation of the

Committee would be given fast-track privilege in the House and Senate, assuring

it of an up or down vote and preventing some from using procedural gimmicks to

block action.

* To Meet This Target, the Committee Will

Consider Responsible Entitlement and Tax Reform. This means putting all the

priorities of both parties on the table - including both entitlement reform and

revenue-raising tax reform.

4. A STRONG ENFORCEMENT MECHANISM TO MAKE ALL

SIDES COME TOGETHER

* The Deal Includes An Automatic Sequester

to Ensure That At Least $1.2 Trillion in Deficit Reduction Is Achieved By 2013

Beyond the Discretionary Caps: The deal includes an automatic sequester on

certain spending programs to ensure that-between the Committee and the

trigger-we at least put in place an additional $1.2 trillion in deficit

reduction by 2013.

* Consistent With Past Practice, Sequester

Would Be Divided Equally Between Defense and Non-Defense Programs and Exempt

Social Security, Medicaid, and Low-Income Programs: Consistent with the

bipartisan precedents established in the 1980s and 1990s, the sequester would be

divided equally between defense and non-defense program, and it would exempt

Social Security, Medicaid, unemployment insurance, programs for low-income

families, and civilian and military retirement. Likewise, any cuts to Medicare

would be capped and limited to the provider side.

* Sequester Would Provide a Strong

Incentive for Both Sides to Come to the Table: If the fiscal committee took no

action, the deal would automatically add nearly $500 billion in defense cuts on

top of cuts already made, and, at the same time, it would cut critical programs

like infrastructure or education. That outcome would be unacceptable to many

Republicans and Democrats alike - creating pressure for a bipartisan agreement

without requiring the threat of a default with unthinkable consequences for our

economy.

5. A BALANCED DEAL CONSISTENT WITH THE

PRESIDENT'S COMMITMENT TO SHARED SACRIFICE

* The Deal Sets the Stage for Balanced

Deficit Reduction, Consistent with the President's Values: The deal is designed

to achieve balanced deficit reduction, consistent with the values the President

articulated in his April Fiscal Framework. The discretionary savings are spread

between both domestic and defense spending. And the President will demand that

the Committee pursue a balanced deficit reduction package, where any entitlement

reforms are coupled with revenue-raising tax reform that asks for the most

fortunate Americans to sacrifice.

* The Enforcement Mechanism Complements

the Forcing Event Already In Law - the Expiration of the Bush Tax Cuts - To

Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013,

the same date that the spending sequester would go into effect. These two events

together will force balanced deficit reduction. Absent a balanced deal, it would

enable the President to use his veto pen to ensure nearly $1 trillion in

additional deficit reduction by not extending the high-income tax cuts.

* In Securing this Bipartisan Deal, the

President Rejected Proposals that Would Have Placed the Sole Burden of Deficit

Reduction on Low-Income or Middle-Class

Families: The President stood firmly against

proposals that would have placed the sole burden of deficit reduction on

lower-income and middle-class families. This includes not only proposals in the

House Republican Budget that would have undermined the core commitments of

Medicare to our seniors and forced tens of millions of low-income Americans to

go without health insurance, but also enforcement mechanisms that would have

forced automatic cuts to low-income programs. The enforcement mechanism in the

deal exempts Social Security, Medicaid, Medicare benefits, unemployment

insurance, programs for low-income families, and civilian and military

retirement.

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