Republican Medicare Reform Plan in Trouble as Democrats Gain Momentum

As the Republican majority in Congress struggles to reform the Medicare system, they are learning a harsh lesson: health reform can be a political minefield in American politics. Touch it and die, as the saying goes. Their entire legislative agenda is faltering, and their plan to "save" Medicare by cutting it to pay for a $245 billion tax cut for the better-off is the main reason why the Republicans are in trouble.

Among the elderly, the approval rating of Gingrich and the Republican Congress has plummeted to just over 30 per cent. The Democrats, led by President Clinton, see Medicaid as their magic bullet to derail the Republican revolution. Currently, when one member of an elderly couple goes into a nursing home, the couple has to help pay the costs, but the family home and enough savings to ensure a $14,000-a-year income for the remaining spouse are sacrosanct. Under the new Republican bill, however, this would no longer be the case.

Key Takeaways:

• The Republican plan to reform Medicare has encountered significant opposition, with the Democrats leading a public relations campaign to highlight the potential devastating effects of the plan.
• The ABC polls show that the Democrats now enjoy a 7 per cent lead over the Republicans in voting intentions for Congressional races, which would be disastrous for the Republican party if maintained.
• The Republicans' approval rating among the elderly has dropped to just over 30 per cent, putting them in trouble.
• The Democrats are using the Republican plan to highlight the party's shift away from their original promise to balance the budget through cutting "pork" - public spending to help individual Congressional districts.
• The Democrats are using the Republican plan as an opportunity to rebuild their strained links with the Democrats in Congress.
• President Clinton has pledged to veto several Republican provisions, including one that would scrap the 1987 regulation requiring nursing homes to be inspected.
• The Republicans' attempts to consolidate their control of Congress while trying to implement their Medicare reform plan are being met with resistance from Democrats.
• The Republicans' decision to cut Medicare to pay for a $245 billion tax cut for the better-off has been a major stumbling block for their reform plan.

Statistics:

• The Democrats now enjoy a 7 per cent lead over the Republicans in voting intentions for Congressional races (ABC polls).
• The Republicans' approval rating among the elderly has dropped to just over 30 per cent.
• The total estimated cost of the Republican tax cut for those earning above $200,000 per year is $18,000 (per year).
• The total estimated savings for those earning above $200,000 per year due to the Republican tax cut is $18,000 (per year).
• The number of Republicans who have voted against the Pentagon budget bill due to the inclusion of an abortion provision is not specified.

Sources:

• ABC polls
• Congressional hearings
• President Clinton's speech on Saturday
• Democratic Congressman Ed Markey's statement
• Republican Majority in Congress
• Republican party platform
• Washington Post
• The New York Times