Obama’s Real Deficit Reduction Problem

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Put on the defensive for supporting Paul Ryan’s drastic reforms, Republicans have been haranguing Democrats to put out their own plan to save Medicare. Democrats, in fact, do have a plan to rein in Medicare costs and make the program sustainable: it’s called the Affordable Care Act. Problem is, the centerpiece of the ACA’s strategy for containing ballooning Medicare costs has been under increasing attack—not only from Republicans, but, increasingly, allies who’ve otherwise been staunch supporters of Democratic health reform.

Politico reports that the National Committee to Preserve Social Security and Medicare, a nonprofit that supported federal health reform, is now turning against the new Independent Payment Advisory Board (IPAB), which will give a group of independent experts unprecedented power to curb Medicare costs. Politico‘s Jennifer Haberkorn explains:

For more than a year, the National Committee and other supporters of the reform law who didn’t like the IPAB were willing to put up with it for the greater good of the law. But in recent weeks, that support has waned.

“IPAB turns Medicare into a scapegoat,” said Max Richtman, executive vice president and acting CEO of the National Committee to Preserve Social Security and Medicare. “Medicare will be forced to make reductions without addressing the rest of the health care costs.”

The group also is concerned that it would be hard for Congress to overturn any decisions by the board; it would have to come up with an equal amount of savings to stop the board’s decisions.

Such opposition builds on a small but growing cohort of House Democrats who have turned against IPAB as well, signing onto a GOP bill to repeal the provision. The movement exposes the political vulnerability of a central piece of the Democratic plan for Medicare reform and long-term deficit reduction.

Though they may dismiss the GOP’s attacks on IPAB as political grandstanding, Democrats are less likely to write off concerns from groups like the National Committee to Preserve Social Security and Medicare, whose political action committee donated over $1.5 million to Congressional candidates in the 2010 campaign cycle—98 percent of it to Democrats alone. While rolling back any piece of the ACA will be an uphill battle—as the protracted battle to repeal the ACA’s 1099 tax-reporting provision proved—this development should put the White House on guard.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

Wow.

And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

About that: It’s unfathomably hard in the news business right now, and we came up about $28,000 short during our recent fall fundraising campaign. We simply have to make that up soon to avoid falling further behind than can be made up for, or needing to somehow trim $1 million from our budget, like happened last year.

If you can, please support the reporting you get from Mother Jones—that exists to make a difference, not a profit—with a donation of any amount today. We need more donations than normal to come in from this specific blurb to help close our funding gap before it gets any bigger.

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