President Obama Commits to Protecting Medicaid, Medicare, and Social Security Whilst House Republican Budget Targets Medicaid & Medicare

The National Council on Independent Living (NCIL) strongly supports President Obama’s commitment to protect Medicaid, Medicare, and Social Security. In his speech on America’s fiscal future, President Obama framed the budget debate in a way that responsibly approaches spending reduction without destroying some of the most important programs that enable people with disabilities to live independently.

The speech by the President comes at a time when people with disabilities are more nervous than ever about block granting Medicaid, privatizing Medicare, and eliminating Social Security. The current political incentive to cut the deficit and reduce spending has raised fears about indiscriminately slashing and changing these programs at the expense of working-class families and people with disabilities. Drawing contrast between his vision and that of House Republicans, the President noted that “The difference with the House Republican plan could not be clearer. Their plan essentially lowers the government’s healthcare bills by asking seniors and poor families to pay them instead. Our approach lowers the government’s healthcare bills by reducing the cost of healthcare itself.”

Medicaid, Medicare, and Social Security are vital programs that help millions of Americans live better and more independent lives. The commitment by the Obama Administration to stand up for these programs represents an important shift in the national debate over spending. “Let me be absolutely clear, I will preserve these healthcare programs as a promise we make to each other in this society. I will not allow Medicare to become a voucher program… I will not tell families with children who have disabilities that they have to fend for themselves. We will reform these programs but we will not abandon the fundamental commitment this country has kept for generations. That includes, by the way, our commitment to Social Security.”

NCIL appreciates the President’s promise this week to preserve these essential programs while also rejecting myths that have been created by the House Republican proposal. “We don’t have to choose between a future of spiraling debt and one where we forfeit our investment in our people and our country.” NCIL applauds the President’s dedication to protecting programs that enable people with disabilities to live more independently.

Congress, however, approved a budget measure that will reduce spending and fund the government through September of this year, which only opens up room for the larger battle over the 2012 budget. Along with previous stopgap measures, the budget plan for the remainder of this fiscal year includes an across-the-board cut of 0.2% and slashes $39.9 billion from current spending. However the impact on IL funding this year is comparatively insignificant to other programs, some of which were cut entirely. 

A day after the 2011 budget was passed by Congress the Republican-led House approved their budget plan for 2012 authored by Rep. Paul Ryan (R-WI). Although the GOP’s 2012 budget is dead on arrival due to sharp Democratic opposition in the Senate and White House, its potential ramifications should be considered by NCIL members because it sets the stakes for battles in the months to come. The House Republican budget blueprint contains very negative implications for healthcare in America, particularly for people with disabilities.

Congressman Ryan’s proposal for 2012 as it currently stands would change Medicare and Medicaid almost beyond recognition. Ryan’s budget, titled “The Path to Prosperity,” would spend around $40 trillion over the next 10 years, $6.2 trillion less than President Obama’s budget plan. Ryan’s plan would end Medicare starting in 2022 as an open-ended entitlement for new retirees and begin raising the eligibility age from 65 to 67. Instead of getting government-paid benefits, retirees could select a private policy on a newly established Medicare exchange. The cuts to Medicaid would be drastic; in excess of $700 billion over the next decade.

The GOP plan would change key portions of the tax code, calling for the drastic reduction in tax rates for the richest Americans and corporations at the expense of middle-class and poor families. The plan also includes freezing domestic discretionary spending below 2008 levels, including the Independent Living Program.

In his weekend address to the nation, President Obama voiced strong opposition to the plan, continuing his efforts to show the Administration’s strong disagreement with the House Republican plan. “It’s a vision that says that in order to reduce the deficit, we have to end Medicare as we know it, and make cuts to Medicaid that would leave millions of seniors, poor children and Americans with disabilities without the care they need.” Minority Leader Nancy Pelosi (D-CA) attempted to highlight the stakes on the House floor during Friday’s debate. “I want to say to my Republican colleagues: do you realize that your leadership is asking you to cast a vote today to abolish Medicare as we know it?” The rhetoric is likely to escalate over the summer, and possibly continue through the 2012 elections.

NCIL urges our members to pay close attention to the direction of this debate and the gravity of the various proposals. As Congress goes into recess over the next two weeks, members should take time and speak with legislators in your own districts, letting them know that Centers and people with disabilities will not stand for drastic cuts and changes to important programs which enable millions of people to live with more stability and independence.

If you have questions about the President’s budget, the congressional budget process, or IL funding, please call NCIL Policy Analyst Austin Walker at (202) 207-0334 (toll-free: 1 (877) 525-3400), ext. 1008. Austin can also be reached by e-mail at austin@ncil.org.