Lieberman defies Dem leaders, backs modest cuts to Medicare benefits

Sen. Joe Lieberman (Conn.), an Independent who caucuses with Democrats, is taking on Democratic leaders over cuts to Medicare benefits.

He has suggested modest cuts to Medicare benefits in an effort to soften the hard divisions in the debt-limit talks.

Lieberman on Wednesday morning called for raising the Medicare eligibility age from 65 to 67.

{mosads}”The fact is that those who say you can’t do anything with Medicare, we just won’t support it, are not doing a favor to the Medicare program,” Lieberman said in a speech on the Senate floor.

Lieberman’s comments are a tacit rebuke of Senate Democratic leaders who declared on Tuesday afternoon that cuts in Medicare benefits should be off the table. 

“We want to make our position on Medicare perfectly clear, no matter what we do in these debt limit talks, we must preserve the program in its current form and we will not allow cuts to seniors’ benefits,” Sen. Charles Schumer (N.Y.), chairman of the Democratic Policy Committee, said Tuesday at a press conference with Senate Majority Leader Harry Reid (D-Nev.).

But Lieberman will propose benefits cuts in legislation he plans to unveil and circulate among colleagues. 

“You can’t say, ‘Don’t touch Medicare,’ ” Lieberman said Wednesday morning. “I must say I’m disappointed when I hear people say that.”

Lieberman said his proposal would save $250 billion over a decade and keep Medicare alive and serving senior citizens for at least another 20 years. 

He would raise the Medicare eligibility by two months every year beginning in 2014 until it reaches 67 by 2025, saving $125 billion over 10 years.

Lieberman also wants to reform the Medicare benefit structure, which he critiqued as “misunderstood” and “prone to overutilization.”

He has prescribed creating a single combined Part-A and Part-B deductible and create a maximum out-of-pocket benefit that would require seniors to only pay a certain amount out of their pocket for healthcare.

Thirdly, Lieberman said it’s time to reform Medicare’s premium structure. He noted that when Congress first created Medicare, lawmakers expected enrollees and the federal government to share costs 50-50.

He argued that today enrollee premiums support only 25 percent of the cost of the program.

{mosads}Lieberman wants to raise premiums for all new enrollees in Medicare Part B, starting in 2014, so they would pay 35 percent the cost of the program instead of 25 percent.

He acknowledged his proposal would stir controversy.

“You can’t save Medicare without doing some things that makes people unhappy,” he said.

Democratic leaders such as Reid and Schumer argue that cuts in benefits aren’t necessary.

They say they want to extend the program’s solvency, but without requiring seniors to pay more.

Schumer noted Tuesday the 2010 healthcare reform law achieved $500 billion in Medicare savings, extending the program’s life by five years.

“If we’re looking to make further reforms to Medicare, we should build on what we did in the healthcare law, where we proved you can extend the program’s solvency without cutting benefits for seniors,” Schumer said.

Schumer proposed delivery reform. He says the federal government should reimburse doctors based on quality of care and results instead of shelling out for each pill, each test and each day of treatment.

Schumer also called for more investment in preventative treatment, which would save the government “billions of dollars.”