President Joe Biden vows to 'make the Medicare trust fund solvent beyond 2050' in NYT editorial

07 March 2023

President Joe Biden on Tuesday vowed to protect Medicare for at least another couple of decades as Republicans remain split over whether cuts should be made to it and Social Security in order to reduce federal spending.

In a guest essay published in The New York Times, Biden laid out his plan to maintain the program's financial viability without reducing the care that it provides for its recipients.

"The budget I am releasing this week will make the Medicare trust fund solvent beyond 2050 without cutting a penny in benefits. In fact, we can get better value, making sure Americans receive better care for the money they pay into Medicare," Biden wrote, noting that only former President Barack Obama's Patient Protection and Affordable Care Act – more commonly known as Obamacare – contained as many "smart reforms to make our health care system more efficient while improving Medicare coverage for seniors" as Biden's Inflation Reduction Act.

"So first, let's expand on that progress. My budget will build on drug price reforms by strengthening Medicare's newly established negotiation power, allowing Medicare to negotiate prices for more drugs and bringing drugs into negotiation sooner after they launch. That's another $200 billion in deficit reduction. We will then take those savings and put them directly into the Medicare trust fund. Lowering drug prices while extending Medicare’s solvency sure makes a lot more sense than cutting benefits," Biden proposed.

"Second, let's ask the wealthiest to pay just a little bit more of their fair share, to strengthen Medicare for everyone over the long term," the president continued. "My budget proposes to increase the Medicare tax rate on earned and unearned income above $400,000 to 5 percent from 3.8 percent. As I proposed in the past, my budget will also ensure that the tax that supports Medicare can't be avoided altogether. This modest increase in Medicare contributions from those with the highest incomes will help keep the Medicare program strong for decades to come. My budget will make sure the money goes directly into the Medicare trust fund, protecting taxpayers' investment and the future of the program."

Biden also tore into right-wing Make America Great Again lawmakers, whom he said "want to take away the power we just gave to Medicare to negotiate for lower prescription drug prices. Get rid of the $35 per month cap for insulin we just got for people on Medicare. And remove the current $2,000 total annual cap for seniors."

Biden warned that "if the MAGA Republicans get their way, seniors will pay higher out-of-pocket costs on prescription drugs and insulin, the deficit will be bigger, and Medicare will be weaker. The only winner under their plan will be Big Pharma. That's not how we extend Medicare's life for another generation or grow the economy."

Biden's full column is available here (subscription required).

From Your Site Articles