HEALTH CARE
Fact-checking FactCheck.org
Sen. John McCain's (R-AZ) first health care plan released in 2007 was supposed to be financed by exposing health benefits to income and payroll taxes. But analysts argued that doing so would result in a massive tax increase on the middle class, so the campaign flip-flopped earlier this month and said that McCain would finance the plan by making major reductions to Medicare and Medicaid. Independent analysts estimated that the reductions "could result in cuts of $1.3 trillion over 10 years to the government programs." Last week, Sen. Barack Obama's (D-IL) presidential campaign released a television ad criticizing McCain for his proposal to pay for his health care plan with "major reductions to Medicare and Medicaid." The ad's assertion of potential benefit cuts was based on an analysis by the Center for American Progress Action Fund (CAPAF), which found that in order for McCain to close his $1.3 trillion budget gap, he would have to "cut Medicare by 13 percent over 10 years" as well as slash "Medicaid spending by 13 percent over 10 years." CAPAF calculated that neither McCain's Medicare and Medicaid spending would keep pace with medical inflation growth and enrollment increases, so his proposal would require "cuts in benefits, eligibility, or both."
click the headline for more, "Under the Radar" and "Think Fast"
Source: The Progress Report
