Independent Payment Advisory Board

Will Dems Help GOP Quash Obama's Plan To Save Medicare?

Sahil Kapur | February 29, 2012, 5:31AM

Republicans are poised to advance repeal Wednesday of a critical provision in the health care reform law designed to preserve traditional Medicare -- and they've enlisted a number of key House Democrats for the cause. Victory isn't imminent, as Senate Dems aren't biting, but the growing defections help the GOP's long-term push to privatize Medicare.

With Medicare's trust fund set to be empty by about 2024, dramatic cost-cutting measures will ultimately be required. Republicans want to achieve this by transforming Medicare into a "premium support" program in which seniors are given a voucher to buy their own private insurance. President Obama has a different idea, and has already enacted the framework for it: a panel called the Independent Payment Advisory Board (IPAB), set to take effect in 2014, comprising 15 appointed experts tasked with holding down Medicare payments to providers -- without cutting benefits.

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Independent Payment Advisory Board

Why Republicans Are Fighting To Repeal Obama's Medicare Cost-Cutting Board

Sahil Kapur | February 28, 2012, 5:29AM

House Republicans are poised to advance legislation this week to repeal President Obama's Medicare cost-cutting board, a provision enacted in the health care reform law. The Energy & Commerce Committee is set to mark it up this Wednesday, and the repeal bill already has enough cosponsors to pass the House. It's not expected to survive the Senate or Obama's veto pen, but the debate over this provision cuts to the heart of the battle over how to save Medicare in the long run.

Some background: The Independent Payment Advisory Board (IPAB) is set to take effect in 2014, and would comprise 15 President-appointed and Senate-confirmed experts charged with holding down Medicare per-beneficiary spending by restricting reimbursements to providers. It is forbidden from cutting payments to beneficiaries. Congress can override the panel is by passing an alternate way to save the same amount of money, or with a three-fifths Senate majority. The health care industry has been outspoken in its hatred for IPAB. Republicans are united in their effort to kill it, and even some House Dems are on that page.

The question now is: Why is the party that's hell-bent on reining in Medicare pushing to repeal this powerful tool for doing just that? Part of it is to score political points by slicing off a key piece of the Affordable Care Act. But more importantly, Republicans don't want to keep Medicare in its current form. Many of them don't think that's feasible. They want to transition it to a privatized model a la the Paul Ryan plan, where seniors get a fixed subsidy -- or "premium support" -- to buy their own insurance on a private exchange.

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Rudy Giuliani

Giuliani: We Need A President Who Can Say 'Bomb' Iran

David Taintor | February 24, 2012, 10:38AM

Former New York Mayor Rudy Giuliani

The war drums are beating louder and louder for Iran. And on CNN Thursday night, former New York Mayor Rudy Giuliani did his part, casually saying President Obama should threaten to "bomb" Iran to prevent the country from developing a nuclear weapon.

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Gas Prices

The Truth About Political Attacks Over High Gas Prices

Brian Beutler | February 24, 2012, 5:25AM

Image from Orla/ Shutterstock

One of Aristotle's laws of nature is that every time fuel prices rise, political snake oil salesmen come out of hiding to blame it on their enemies: They attribute (or implicitly link) cost spikes to the other party's policy decisions. The solution, they always say, lies in the policies they've advocated since what feels like the beginning of time.

This happens every few years, and every few years it's total nonsense.

Since it's happening again, and since the press seems once again more concerned about the political implications of rising gas prices than with actual forces driving them up, TPM turned to energy expert Robert Rapier for an analyst's view.

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Payroll Tax Cut

Winners And Losers Of The Payroll Tax Cut Debacle

Sahil Kapur | February 23, 2012, 2:39PM

President Barack Obama and Vice President Joe Biden

President Obama signed the payroll tax cut package into law late Wednesday night, capping off a months-long saga that might prove to be Congress's last major battle before the 2012 election. So just what does the final outcome mean for the various political players? Here's how things broadly broke down.

President Obama is the obvious winner, having portrayed himself throughout the long fight as the champion of middle-class tax cuts and economic security for the long-term unemployed. The payroll battle, which played out alongside a gradually improving economy, helped bump up Obama's approval ratings and gave him an important political weapon for re-election.

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Taxes

What's Behind Obama's New Push For Corporate Tax Reform

Brian Beutler | February 22, 2012, 12:45PM

President Barack Obama during his 2012 "State of the Union" address

A new Obama administration framework for reforming the business income tax code is touching off a brand new election-year policy debate in Washington. But this time around there's a great deal of consensus between the parties over the ideal nature of reform. And that means there will be two main obstacles to success. The first issue will be political concerns -- should Republicans hand President Obama a substantive victory with control of the White House on the line? The second will be the parochial concerns of powerful interest who stand to lose tremendous subsidies as a result of the reforms.

In a briefing with reporters Wednesday, Treasury Secretary Timothy Geithner laid out the five principles underlying the proposed reforms. Any corporate tax reform should eliminate scores of loopholes and subsidies and use the savings to lower rates -- specifically from a current top rate of 35 percent down to 25 percent.

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Birth Control

Birth Control Lawsuits Have Shaky Legal Merit

Sahil Kapur | February 22, 2012, 6:17AM

President Obama's religious accommodation in his rule requiring insurance plans to cover birth control has failed to placate elements of the Catholic community, and, with strong GOP support, they remain determined to sue. But do the lawsuits, the latest of which was filed Tuesday, have much legal merit? Possibly, but if judicial precedent is any indication, probably not.

The tweaked regulation says religious non-profits like universities and hospitals do not need to pay for free birth control coverage in their employee health plans, and can pass the cost on to the insurance company. (Churches and houses of worship are entirely exempt.) But like other entities, Ave Maria University, a Catholic institution, argues in a new legal challenge that affiliating itself with any access to contraception would violate its religious beliefs.

But barring a departure from precedent, the lawsuits aren't set to go very far.

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Barack Obama

Politico Gaffe Becomes Organizing Tool In Wisconsin Recall Effort

Brian Beutler | February 20, 2012, 11:57AM

When President Obama spoke to workers in Wisconsin last week, Politico accidentally made itself the story. The paper's reporter mistook the Wisconsin state flag for the seal of a local union, and cited it as an illustration of President Obama's pro-union bias.

Politico cleaned the egg off its face by wiping the story from the Internet. But the gaffe made the rounds among actual union officials in the state and now that the laughter's subsided, they've turned it into a membership drive.

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Jobs

Two Charts That Should Terrify Republicans

Brian Beutler | February 20, 2012, 4:52AM

Senate Minority Leader Mitch McConnell (R-KY)

If Republicans seem spooked to you these days, here's why.

President Obama's political comeback over the past several months aligns neatly with when he began more aggressively attacking the GOP and politicking for economic growth and equality back in September.

But over that same stretch, the economy began moving in the right direction. Indicators of economic growth started moving upward, and the eye-popping indications of economic weakness started moving downward. That's surely had an effect. And if the trends continue, it augurs very well for Obama in the general election.

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Payroll Tax Cut

It's A Wrap: Congress Finalizes Payroll Tax Cut Deal

Sahil Kapur | February 16, 2012, 10:20AM

Lawmakers sealed the deal late Wednesday night on yearlong extensions of the payroll tax cut, unemployment compensation and Medicare physician payment rates. It's a political victory for President Obama and the conclusion of a no-win situation for Republicans that they were eager to move past.

The agreement was announced by Sen. Max Baucus (D-MT) and Rep. Dave Camp (R-MI), the two lead negotiators in conference committee. Final votes are expected by the end of this weekend.

The conclusion comes at the end of a grueling series of negotiations that spilled over from last year. That led House Republicans to this week drop their demand that the payroll tax cut be offset with spending cuts elsewhere, paving the way for the agreement as the two sides had been deadlocked on pay-fors.

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Stephen Colbert

Colbert Performs Dramatic Reenactment Of Obama's 'War On Religion'

David Taintor | February 15, 2012, 11:10AM

Stephen Colbert

Stephen Colbert, devout Catholic, despises President Obama's "war on religion." The administration's rule that health insurance companies provide contraception coverage is basically "forcing priests to hand out condoms at mass," Colbert said Tuesday.

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Barack Obama

CHART: Don't Buy The GOP Hype On Obama Budget Deficits

Brian Beutler | February 15, 2012, 5:40AM

President Barack Obama and Vice President Joe Biden

Republicans have taken to describing President Obama's budget as "deficits built to last" -- a play on Obama's call for an economy built to last. The implication: hand the government over to us, and we'll rid the budget of this deficit scourge. Put aside for a moment that wiping out deficits too fast would be economically disastrous, leading to rocketing unemployment rates. The truth is there are plenty of budget proposals out there, including Paul Ryan's "Path To Prosperity," which was endorsed by nearly every Republican in Congress. And these also project significant deficits well into the future.

Of course, Obama's budget is very substantively different from Paul Ryan's Path to Prosperity. Obama's would draw down deficits over the coming decade with a mix of proposed tax increases on high income earners and corporations, already enacted spending cuts, and additional cuts to health care spending and other programs. But it maintains the basic shape of the existing safety net over the long term. Ryan's calls for huge cuts to the safety net, for making Medicaid a block grant program, and, after a decade, for phasing out Medicare. But he proposes significant tax cuts at the same time.

And even with all that slashing, just what does that do to the projected deficit? The chart below tells you quite starkly:

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Contraception

Blunt: Contraception Mandate Not 'Only Litmus Test' For Presidential Candidate

Brian Beutler | February 14, 2012, 4:23PM

Senator Roy Blunt (R-MO)

You'd think the GOP's ongoing, dogged push to allow any employer to deny female employees contraceptive coverage is an indication that Republicans take a strong stance on the issue.

But it's not. On Tuesday afternoon, I asked Sen. Roy Blunt (R-MO) whether he could support a Republican presidential candidate who had required religious institutions to provide female employees with contraceptive coverage.

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Barack Obama

Obama Urges Public To Keep Up The Payroll Tax Pressure On GOP

Sahil Kapur | February 14, 2012, 11:29AM

President Barack Obama during his 2012 "State of the Union" address

President Obama on Tuesday suggested that the House GOP's recent willingness to extend the payroll tax cut without offsets is "good news" but warned that it can't be taken for granted -- and capitalized by demanding an extension of the tax break and unemployment insurance without "ideological sideshows."

"The good news is over the last couple of days we've seen some hopeful signs in Congress that they realize that they've got to get this done. And you're starting to hear voices talk about how can we go ahead and make this happen in a timely way on behalf of the American people," Obama said at the White House. "That is good news."

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Jon Stewart

Jon Stewart Mocks GOP Opposition To Birth Control Rule

David Taintor | February 14, 2012, 9:08AM

Jon Stewart

Jon Stewart on Monday caught himself up on the growing controversy over the Obama administration's rule that employers provide birth control coverage in their health care plans.

President Obama last week announced a compromise that would require insurance companies to pay for coverage if employers oppose contraception on "moral" grounds.

Great, Stewart said. "So I guess we're done here. Compromise made, everybody happy."

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Budget

How Obama's Budget Throws A Big Punch At The GOP

Brian Beutler | February 13, 2012, 1:47PM

President Barack Obama during his 2012 "State of the Union" address

President Obama's fiscal year 2013 budget envisions the economy healing steadily after years of hemorrhaging and stagnation -- and key government services surviving mostly despite the violence done to the federal ledger by the Bush tax cuts, the wars in Iraq and Afghanistan and the 2008 financial crisis.

It also shows federal deficits declining steadily over the coming decade, and the national debt stabilizing as a share of GDP over the same period.

These are the consequences of multiple, competing strategic ideas:

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Barack Obama

Has Obama Cornered Republicans On Contraception?

Sahil Kapur | February 13, 2012, 5:47AM

President Barack Obama and Senior Adviser David Axelrod

Republicans are doubling down in their assault on President Obama's birth control requirement, insisting that his accommodation of religious nonprofits does not address religious concerns. But by attempting to keep the heat on Obama, the GOP might be diving head-first into a culture war over contraception that social conservatives lost long ago in the minds of the public.

Speaker John Boehner (R-OH) said the House will push to repeal the rule entirely, while Senate Minority Leader Mitch McConnell (R-KY) said Republicans will force a vote on legislation permitting any employer to deny birth control coverage in their health insurance plan by claiming a moral or religious objection. "This issue will not go away until the administration simply backs down," McConnell said Sunday on CBS' Face The Nation.

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Budget

Obama To Draw Contrast With GOP In Budget

Brian Beutler | February 13, 2012, 5:43AM

President Barack Obama

Though required by law, White House budgets are largely political documents that tend to become more and more political as reelection time gets closer and closer.

This year's will technically be no different -- but the long-term stakes will be much higher than they usually are and clarifying that fact for voters will be key to President Obama's appeal in 2012.

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Birth Control

White House Seeks To Mute Catholic Uproar Over Contraception Rule

Brian Beutler | February 10, 2012, 12:23PM

In the days since the conservative and religious uproar over the Obama administration's new contraceptive rule first erupted, the White House has been attempting to thread a policy needle so that nearly all women can receive free contraceptive services from their employer-provided health insurers, without forcing religious non-profits to provide benefits they oppose on "moral" grounds.

On Friday, President Obama announced the plan, which senior administration officials described in detail on a conference call with reporters.

"All women will still have access to free preventive care that includes contraceptive services," one official said. But if a religious institution declines to provide coverage that includes contraceptive services, "the insurance company will be required to reach out directly and offer her contraceptive coverage free of charge."

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Debt

White House To GOP: Only One Way Around Defense Cuts -- And You're Not Gonna Like It

Brian Beutler | February 6, 2012, 3:52PM

House Speaker John Boehner (R-OH), President Obama and Senate Majority Leader Harry Reid (D-NV).

In light of Congressional Republicans' abandonment of a key part of the debt limit agreement, two senior administration officials briefing reporters at the White House Monday said automatic, across the board cuts to defense programs will happen as scheduled unless Republicans relent on their refusal to raise revenues.

The officials conducted the briefing under the condition that they not be quoted directly, but their position was unambiguous -- the White House will not support any effort to swap out scheduled cuts to defense programs (and other automatic cuts) unless Congress passes a balanced package of deficit reducing legislation of equal or greater measure. That means new tax revenue from wealthy Americans and corporate interests, which Republicans have routinely refused to consider.

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Bob McDonnell

Bob McDonnell: GOP Governors Deserve Credit For The Recovery, Not Obama

Sahil Kapur | February 5, 2012, 1:39PM

Bob McDonnell

Virginia Governor and Mitt Romney surrogate Bob McDonnell (R) on Sunday floated what may turn into a Republican talking point if the economy continues to improve: It wasn't President Obama who made it happen, it was the GOP governors.

"Look, I'm glad the economy is starting to recover, but I think it's because of what Republican governors are doing in their states, not because of the president," McDonnell said on CNN's "State of the Union."

The Virginia governor unleashed a comprehensive broadside against Obama's economic record and governance in his first term. "It's been a complete failure of leadership," he said. "He cannot run on his record. He's had no plan for jobs or energy that he's got passed, so he's got a tough record."

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Birth Control

Boehner: Birth Control Mandate Is Unconstitutional

Sahil Kapur | February 2, 2012, 2:55PM

U.S. Speaker of the House John Boehner (R-Ohio) speaks to the press during his weekly press conference on Capitol Hill in Washington, D.C. on December 1, 2011.

As religious groups freak out over the Obama administration's contraception mandate, House Speaker John Boehner (R-OH) piled on by claiming that the policy is unconstitutional.

The mandate, authorized under the Affordable Care Act, holds that employer-provided health insurance plans must provide birth control to women without co-pays. Houses of worship are exempt, and religious nonprofits are allowed an additional year before they begin complying. But conservative religious organizations and their allies on Capitol Hill say that's not enough.

"I think this mandate violates our constitution," Boehner told reporters on Thursday. "I think it violates the right of these religious organizations. And I would hope that the administration would back up and take another look."

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CNN

CNN: Takeaway From Obama Prayer Breakfast Speech Is He's Still A Christian

David Taintor | February 2, 2012, 11:32AM

Apparently we're back to casting doubt on President Obama's Christian faith.

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Mitt Romney

Why Florida Was A Dangerous Test Case For Romney's General Election Prospects

Brian Beutler | February 2, 2012, 5:41AM

Mitt Romney

The fight for Florida's fifty delegates was more than just a key test for the four remaining Republican presidential hopefuls. It also took the GOP's three year experiment with far-right politics into a more appropriate laboratory -- a state where the voters didn't reflect the party's base as neatly as they did in Iowa, New Hampshire, and South Carolina.

And though Mitt Romney trampled his opponents and solidified his status as the nominee-in-waiting, Florida was also a wake-up call. To win so resoundingly, Romney had to inch away from conservative movement dogma for the first time since he began his candidacy.

It wasn't easy.

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Affordable Care Act

Did Health Care Reform Hurt The Private Insurance Part Of Medicare? Apparently Not

Sahil Kapur | February 1, 2012, 1:15PM

President Barack Obama

The Obama administration announced Wednesday that the Medicare Advantage program, which allows seniors to receive health coverage through a private insurer, is enjoying lower costs and more customers as a result of the health care reform law.

Medicare Advantage enrollment has risen 10 percent over the last year while average premiums have fallen by 7 percent, said Health and Human Services Secretary Kathleen Sebelius. She also pointed out that similar improvements were seen the previous year.

The figures bolster President Obama's defense of his signature achievement, and for Democrats it has the added bonus of refuting earlier Republican warnings that "Obamacare" would gravely undermine the choice provisions in Medicare.

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