December 4th, 2009

Philadelphia Inq reports

WASHINGTON – Senate Democrats closed ranks yesterday behind $460 billion in politically risky cuts in Medicare payments that are crucial to their health-care legislation, thwarting a Republican attempt to doom the overhaul.

The GOP bid to reverse cuts to the popular program drew two Democratic defectors but failed, 58-42.

Approval of the amendment would have stripped the bill of money needed to pay for expanding coverage to tens of millions of uninsured.

The broader legislation aims to extend health coverage to 31 million Americans who now lack it, while barring insurance-industry practices such as denying coverage on the basis of preexisting medical conditions.

Though the overhaul is estimated to cost nearly $1 trillion over 10 years, the Congressional Budget Office has said it would cut federal deficits by $130 billion over that period, and probably reduce them further in the 10 years beyond that.

“Our bill does nothing to reduce guaranteed Medicare benefits,” said Sen. Max Baucus (D., Mont.). Other Democrats accused Republicans of raising a false alarm during three days of debate.

The influential seniors lobby, AARP, backed the 10-year package of cuts in projected Medicare spending. That gave Democrats political cover to pare subsidies to private Medicare plans as well as payments to hospitals, hospices, home health agencies, and other providers.

Republicans disagreed vigorously.

“Medicare is already in trouble,” said Minority Leader Mitch McConnell of Kentucky. “The program needs to be fixed, not raided to create another new government program.”

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