Archived Content

Welcome movement toward entitlement reform

Apr 16, 2013

The Washington Post today ran a solid Page One story on the shifting political landscape that makes entitlement reform increasingly possible. From "Lawmakers ready to weigh entitlements":

President Obama’s offer to trim Social Security benefits has perplexed and angered Democrats, but GOP leaders are embracing the proposal and rushing to jump-start a debate that will delve even more deeply into the touchy topic of federal spending on the elderly...

Also on the table are higher Medicare premiums and reduced benefits for better-off seniors, and a higher Medicare eligibility age...

The developments signal an important shift in the budget battle as party leaders nervously prepare again to raise the federal debt limit. After more than two years of talking about taxes and “wasteful” government spending, policymakers appear ready to move into the more serious and sensitive realm of entitlement programs.

Business Roundtable welcomed provisions in President Obama's budget that would introduce "chained CPI" as a more accurate way to measure inflation, as well as its embrace of means-testing for Medicare.

The move toward a chained CPI is an important step toward protecting Social Security and Medicare while bringing needed fiscal discipline to the federal budget. The proposal to expand means-testing would also strengthen Medicare’s viability and is consistent with Business Roundtable’s principles on entitlement refor

The only critique we'd make of the Washington Post's article is that it focuses almost entirely on the politics of entitlement reform, a common-enough ailment of Washington-based journalism, granted. The media would do well to always include the dire fiscal consequences of inaction on Medicare and Social Security. As Gary Loveman, CEO of Caesars Entertainment and head of BRT's Health and Retirement Committee, explained in a recent Wall Street Journal op-ed:

The math on debt is clear: Medicare, Medicaid and Social Security consume 42% of the federal budget and are projected to account for half of the budget by 2020. Addressing debt and deficits means tackling the projected spending growth without undermining the retirement security that Americans rely on.

We use cookies to give you the best experience when using our website. You can click “Accept” if you agree to allow us to place cookies. For more information, please see our Cookie Notice.