Debt Ceiling Proposal

Friday, August 19 2011


President Signs Budget Control Act of 2011


The Budget Control Act (BCA) of 2011 was passed by Congress on August 2, 2011 to increase the debt limit and reduce spending. This legislation allows the federal government to fulfill their financial obligations like paying the interest on our national debt and to make payments for federal programs such as Social Security and veteran benefits. Budget Control Act 2011 Flow Chart


 

Wednesday, August 3 2011


President Signs Budget Control Act of 2011


Yesterday, President Obama signed the Budget Control Act of 2011 into law. The law calls for the national debt limit to be increased from $2.1 to $2.4 trillion. The plan also calls for between $2.2 and $2.4 trillion in spending cuts over the next decade. The first round of spending cuts will total $935 billion over the next decade. The second round of savings will be tied to the work of a newly formed joint Congressional bipartisan "super committee". This committee is required to develop legislation by November 23, 2011 that would result in savings of at least $1.2 trillion. If the committee is unable to produce a bill or Congress fails to pass it, a total of $1.2 trillion in defection reduction would be achieved through across-the-board-cuts. As we mentioned earlier in the week, the door is still open for cuts to Medicare in the second phase of the bill. Although the Budget Control Act of 2011 caps Medicare cuts at 2 percent, these cuts will take place in the form of reduced reimbursement rates to Medicare, doctors, hospitals, and other providers. In addition to these cuts, Medicare providers are already facing a 25 percent reimbursement cut in January 2012, as the Sustainable Growth Rate (SGR) was not resolved in the debt ceiling debate NPAF will engage and educate members of the super committee to ensure that Medicare patients' access to care is a top priority in their deliberations. We will monitor the panel's recommendations and pursue every opportunity to emphasize that cuts to providers simply means cuts to patients.


 

Monday, August 1 2011


Congress Votes Today on Debt Ceiling Proposal


After months of deliberations a bipartisan compromise proposal was approved at 1:45 AM this morning to address the upcoming debt-ceiling deadline. The deficit reduction package, scheduled to be voted on today, will reduce the national deficit, raise the debt limit and avoid default. Highlights of the agreement include extending the debt limit to 2013, a nearly $1 trillion down payment on deficit reduction, an expedited process for balanced deficit reduction in a longer term process for an additional $1.5 trillion in savings through tax and entitlement reform and an enforcement mechanism that will compel spending cuts (50% defense/50% non-defense). While Medicaid cuts are excluded in the proposal, the door is still open for cuts to Medicare in Stage Two of the proposal when the 12-member, bipartisan panel looks for $1.5 trillion in cuts. Once announced, NPAF will work with members of the panel to ensure that Medicare patients' access to care is kept as the top priority in their deliberations. We will monitor the panel's recommendations and pursue every opportunity to emphasize that cuts to providers, simply means cuts to patients. Below are links to official documents related to the proposed debt deal for your review. Please contact us at action@npaf.org if you have any questions.