The president-appointed National Commission on Fiscal Responsibility and Reform has outlined an initial $3.8 trillion budget deficit plan that includes cuts in Social Security and Medicare benefits, including increasing the retirement age.
The plan would also decrease the rate at which Social Security benefits increase. The budget plan suggests savings from payment reforms, cost-sharing, and malpractice reform, and long-term measures to control health care cost growth. Interestingly, the plan includes an education campaign to encourage greater personal savings, delayed retirement, and phased retirement.
If passed, none of the proposals would take effect until 2012 to avoid upsetting an already fragile economy and recovery. Much more discussion by the Commission and policymakers is expected about these ideas in the months ahead.
View the Debt Commission Draft.
Read “U.S. Debt Proposal Would Cut Social Security, Taxes, Medicare.”
