Debt deal on table includes possible Medicare cuts

Sunday morning talk shows brought word of a debt-limit deal in the works.

Reuters: "Senate Republican leader Mitch McConnell on CNN's State of the Union said lawmakers were looking at $3 trillion in spending cuts. 'We're very close,' McConnell said" (Smith, 7/31).

The Washington Post: "Late Saturday, McConnell and [Vice President Joseph] Biden appeared to have settled on a trigger that would cut most government spending - including the defense budget and Medicare — by as much as 4 percent if the committee failed to produce a plan to tame the spiraling national debt, the officials said" (Montgomery and Helderman, 7/31).

The Associated Press: "[Senior White House adviser David Plouffe] suggests that negotiations are still focused on how to compel Congress to approve a deficit-cutting plan of tax and entitlement reform later this year" (7/31).

USA Today: "The outlines of a deal reportedly call for an initial debt limit increase of $1 trillion, with spending cuts of the same amount over the next decade. A second debt limit increase of $1.4 trillion would depend on a newly created congressional committee that would recommend similar budget cuts, including possible tax reform and changes to Social Security and Medicare" (Jackson, 7/31).

Fox News: "Importantly, a 'trigger' in the proposal would automatically enact across-the-board cuts to Medicare, defense and other areas if the committee's recommendations are not approved by the end of the year" (Emanuel, Pergram, Turner and Henry, 7/31).

Bloomberg: "No more than 4 percent of Medicare would be subject to cuts, and beneficiaries would be unaffected as reductions would apply to providers, the person said. Social Security would be untouched" (Przybyla and Brower, 7/31).

The New York Times: "Mr. McConnell ... said the committee — made up of six Democrats and six Republicans — would be under tremendous pressure by the American people and the markets to implement the further spending cuts" (Shear, 7/31).

Politico: "[Democratic Sen. Chuck] Schumer said he did secure one victory: No entitlement cuts in the initial round of cuts, particularly to Medicare -- which Democrats hope to use a major issue against GOP Senate and House candidates in 2012" (Thrush, 7/31).

Kaiser Health News summarized coverage of the possible effects of a default: Default Scenarios Include Questions About Fate Of Medicare, Medicaid, Government Workers.