'Damaging Cuts' To Medicare And Social Security Are Looking More Likely With McCarthy As House Speaker. Here's What It Will Mean For Retirees.

Congressman Kevin McCarthy left his party's conservatives to become Speaker of the House of Representatives.
These concessions include budget cuts that threaten Medicare and Social Security.
Proponents say that even if this program fails, negotiating it could jeopardize social benefits.

House Republicans elected Rep. Kevin McCarthy as Speaker of the House after a historically lengthy election process.

This may be bad news for some retirees.

This was due to McCarthy making concessions to keep his job. Recent reports strongly suggest the subsidies are tied to programs like Medicare and Social Security, which Republicans have fought for decades.

To win supporters at Freedom House, McCarthy made several concessions, including reopening debate on the spending bill and promising not to raise the debt ceiling without cutting Social Security and Security benefits. social,” according to The New Yorker. once.

That became clearer over the week: GOP leaders briefed House Republicans on Tuesday, outlining their budget and priorities, CNN reported. According to a screenshot of the presentation seen by CNN, spending priorities were unclear, but changes were made to "mandatory spending programs" that could include Social Security and health care.

These reductions reduce costs for physicians and make health care more affordable for some elderly patients. If health care providers receive less money through Medicare, they cannot afford to hire more nurses, doctors and other staff or fund the equipment needed to provide services. Christian Schalgain, director of health policy and advocacy for the American College of Surgeons, said in November that this affects the quality of care patients receive and the number of Medicare patients a health care provider can accept.

Democrats expressed relief after November's midterm elections when they narrowly controlled the Senate and won more seats in the House of Representatives than expected. But some Republicans in the House of Representatives appear to be pushing the political direction of their renewed majority. Policy experts tell Insider there is reason to fear for the fate of major programs for seniors in the United States.

"The current threats to Medicaid and other programs like Medicare are very serious," said Edwin Park, a public policy professor at Georgetown University who focuses on health policy.

McCarthy's election has been delayed by the House Freedom Caucus, a group of about 50 far-right Republicans who vehemently oppose what they see as government spending.

It's unclear what their program will mean for wellness and health plans, but Park says the Republican Research Committee's 2023 plan shows those programs are at risk of being cut.

For example, on Medicaid, Republicans have proposed turning Medicaid and the Affordable Care Act into block grants, which would cut spending by $3.6 trillion over 10 years.

"Of course, the Senate and the White House are strongly opposed," Park said, "but they didn't make it clear that raising the debt ceiling would be hostage to deep spending cuts and less damaging cuts. at the Medicaid table." Even if severe restrictions are lifted.

Park said the reduction in the use of payments to health care providers to support the Medicaid cost share is an example of a smaller but more damaging reduction. Almost everyone uses these limits, but the budget excludes such use of vendor funds. According to Park, the RSC plan involves the complete elimination of state taxes on suppliers.

"We hope it doesn't come to that, but the owners don't seem to understand the serious implications of the loss," he said.

Mary Johnson, a Social Security and Medicare policy analyst at the League for Social Security and Medicare, told Insider that the RSC 2023 plan is good news for Republican plans, but the Senate is controlled by Democrats and harbors old grievances. Voters can support him. Agenda

“They have repeatedly rejected cost-of-living adjustments and other proposals that lack the trust and support of voters, and their families have repeatedly rejected them,” he said.

Johnson warned that any disagreements in budget negotiations could jeopardize the timely payment of Social Security benefits, hurting seniors.

"Leaders often point out that Congress hasn't raised the debt ceiling and paid Social Security benefits on time," he said. But "perhaps it's time to say 'never say never' after the difficulties of electing the Speaker of the House."