Another Stimulus Check Might Mean a Medicare Cut

Democratic leaders are preparing to use a process known as budget reconciliation, which would allow them to pass Biden’s proposal without getting 60 votes in the Senate–which would require at least 10 Republicans. Will there be a bipartisan agreement on relief aid or will the Democrats be forced to cut Medicare funding to feed the 1-in-7 families in America who can’t afford to feed their families?

The split in the Senate

Tension continues to build as Democrats are backing the President’s $1.9 trillion Covid-19 relief proposal, which includes $1,400 stimulus checks and aid to local governments. Republican senators are challenging the relief plan, pushing for a smaller plan that would provide $1,000 checks.

Pay-As-You-Go Act

Democrats considering a maneuver to forgo bipartisan support to pass Covid-19 relief are confronting an unintended consequence: Doing so could automatically cut Medicare. Under a 2010 law, bills that add to the debt trigger automatic cuts. And preventing them would require Republican support.

Democratic leaders are preparing to use a process known as budget reconciliation, from the Pay-As-You-Go Act of 2010, known as PAYGO, which would allow them to pass Biden’s proposal without getting 60 votes in the Senate, a decision that would require at least 10 Republicans.

Under PAYGO, new laws that raise the national debt automatically trigger offsetting cuts in some safety net programs, like Medicare

Related Sources:

Biden’s COVID-19 Plan: Help is on the Way!

Relief Bill Marks an End to Surprise Medical Bills

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