As reported by Bloomberg, plans are developing for automatic budget cuts and tax increases should Congress fail to fix the budget. In the world of health care and Medicare here is what is being proposed. And you thought inflation was just at the pump. Note the possible impact of partial taxation of the value of employer sponsored health benefits.
The Bipartisan Policy Center plan calls for reducing health-care costs, including spending on Medicare and Medicaid. If Congress fails to act, those programs would be subject to automatic cuts. Social Security would also receive automatic cuts unless Congress made revisions to put it on a course for solvency.
In health care, two-fifths of any savings would come from raising Medicare Part B premiums or other options; one-fifth by reducing Medicaid payments to states, and two-fifths from capping the exclusion for employer-sponsored insurance.
Tax increases would occur by raising rates across the board, by reducing tax credits or deductions by as much as half of their value in a given year, or by a combination of the two.
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