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Saturday, July 14, 2012

GAO shows Obama Admin Delays Medicare Cut Impact Until After 2012 Election

By Susan Duclos

Obama's massive Medicare cuts to the elderly will not be seen before November 2012, even though they were originally scheduled to hit before that time because the Obama administration, according to the Government Accountability Office (GAO), has delayed those cuts so they do not hit until after the presidential election in 2012.

Obamacare requires a $500 billion cut in Medicare funding.
A recent report from the Government Accountability Office (GAO) has laid bare the Obama administration’s effort to delay the impact of Medicare cuts in the health care law until after the 2012 election.

Under the new law, cuts to Medicare Advantage funding would force many seniors off their preferred health plans. This aspect of the law was originally intended to go into effect before the election in November, but fearing the political backlash, the administration launched an $8.35 billion “demonstration project” that would effectively delay the cuts until after the election.

The GAO report urged the administration to cancel the project, citing its numerous “design shortcomings” and noting that the program fails to “conform to the principles of budget neutrality,” meaning the $8.35 billion is not offset by spending cuts or other revenue, and will have to be borrowed.

Voters 65 and older, often referred to as the "Silent" generation are more conservative in nature than any other demographic, more engaged in the political process and are traditionally more likely to vote in elections.

It doesn't take a rocket scientist to understand why the Obama administration would not want the Silent generation to feel the effects of his massive $500 billion Medicare cut written in to the Obamacare law,  until after he has attempted to get reelected.