Biden Unveils Plan Averting Medicare Funding Crisis
The White House would raise taxes on high earners
The White House on Tuesday proposed raising taxes on Americans earning more than $400,000 and reducing what Medicare pays for prescription drugs in an attempt to ensure that the health-care program for seniors is funded for the next two decades, challenging Republicans over an imminent funding crisis.
As forecasters warn that a key Medicare trust fund will run into major financial problems within five years, the administration proposed three key changes — including the tax hike and new rules to reduce prescription drug costs — to bolster the program for at least 25 years.
Roughly 60 million seniors depend on Medicare for their health insurance. Because the program is spending money at a much faster clip than it brings in funding, it faces automatic federal cuts starting in 2028, raising the nightmare scenario of medical providers refusing care to senior citizens if Congress and the White House don’t address the looming shortfall first.
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