Concessions

White House to Offer Medicare Cuts

In exchange for potential tax increases.

The White House is reportedly ready to offer to cut tens of billions of dollars from Medicare and Medicaid in the talks to reduce the federal budget deficit—but Republicans have to be prepared to budge on accepting tax-revenue increases. Administration officials and Republican negotiators say the cuts to Medicare and Medicaid are possible without directly imposing new costs on needy recipients or a radical restructuring of either program, but some have doubted the legitimacy of that claim. A coalition of hospital lobbyists has begun a national advertising campaign to block cuts, and the hospitals have made a commitment to spend up to $1 million a week through August on television, print, and online advertising.