Congressional leaders from both parties reached a deal over the weekend on the debt ceiling that includes payment cuts to Medicare providers but not Medicaid, according to a Washington Post report.
Although lawmakers were not overwhelmingly enthusiastic about the debt deal, it comes just one day before the country meets the Aug. 2 expected default date. Pending Congressional approval, the debt deal's key provisions would allow the debt ceiling to be raised by $2.1 trillion-$2.4 trillion in two stages.
In the first stage, borrowing power would be raised by $400 billion immediately, with another $500 billion in borrowing power coming in the following months. Simultaneously, caps to defense and domestic spending — totaling $917 billion over the next 10 years — would be enacted immediately, according to a CNN report.
The second increase would raise the debt ceiling another $1.2 trillion-$1.5 trillion. As part of the deal, a new special Congressional committee would be formed to find at least $1.2 trillion in dollar-for-dollar savings to match the debt ceiling increase.
If the committee fails to recommend the savings by the end of this year, as much as $1.2 trillion in automatic cuts would be enacted, according to the report. The cuts would equally affect defense and domestic programs, including Medicare payments to healthcare providers. Tentatively, payment cuts to hospitals, physicians and other Medicare providers would be limited to 2 percent, according to an LA Times report. However, Medicaid and Social Security would be saved from any cuts.
If the Senate approves the measure, the bill could face a vote in the House by as early as tonight, according to the Washington Post report.
Read the Washington Post report about the new debt deal.
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Although lawmakers were not overwhelmingly enthusiastic about the debt deal, it comes just one day before the country meets the Aug. 2 expected default date. Pending Congressional approval, the debt deal's key provisions would allow the debt ceiling to be raised by $2.1 trillion-$2.4 trillion in two stages.
In the first stage, borrowing power would be raised by $400 billion immediately, with another $500 billion in borrowing power coming in the following months. Simultaneously, caps to defense and domestic spending — totaling $917 billion over the next 10 years — would be enacted immediately, according to a CNN report.
The second increase would raise the debt ceiling another $1.2 trillion-$1.5 trillion. As part of the deal, a new special Congressional committee would be formed to find at least $1.2 trillion in dollar-for-dollar savings to match the debt ceiling increase.
If the committee fails to recommend the savings by the end of this year, as much as $1.2 trillion in automatic cuts would be enacted, according to the report. The cuts would equally affect defense and domestic programs, including Medicare payments to healthcare providers. Tentatively, payment cuts to hospitals, physicians and other Medicare providers would be limited to 2 percent, according to an LA Times report. However, Medicaid and Social Security would be saved from any cuts.
If the Senate approves the measure, the bill could face a vote in the House by as early as tonight, according to the Washington Post report.
Read the Washington Post report about the new debt deal.
Related Articles on the Deficit Reduction Plan:
Gang of Six Deficit Plan Gains Support; Includes $500B Cut to Medicare, Medicaid and Other Federal ProgramsNational Governors Association Urges Deficit Negotiation Leaders to Avoid Cost-Shifting to States
Deficit Negotiations Between Obama, House Speaker Boehner May Include Medicare and Medicaid Cuts, Tax Overhaul