Tuesday, August 24, 2021

The 'PayGo' Myth and Forced Austerity

 

No matter which camp you're in #DemEnter or #DemExit this is a policy Congressional leaders do NOT want you to know about complete with baked in loopholes they use when it suites to donor class. Arm yourself with knowledge and push back on the Pay For question once and for all. Links for today: Actual law text https://www.govinfo.gov/content/pkg/P... House Rules Overview: https://budget.house.gov/publications... ENFORCEMENT The PAYGO rule has not been enforced consistently. For example, the 1997 budget act put in place a method, known as the SGR (the sustainable growth rate), for determining Medicare payments to physicians. Application of that formula threatened huge cuts in Medicare physician reimbursements. Congress prevented the payment rates determined by SGR from taking effect, but only for one year at a time. While Congress did pay for these one-year fixes, by limiting the fix to one year it did not need to pay the cost of the fix over the full budget window. When the Medicare Access and CHIP Reauthorization Act of 2015 replaced the SGR formula with a new system in 2015, Congress waived the PAYGO rules, exempting itself from paying for the entire cost of the new legislation. They again waived the PAYGO rules at the end of 2017 so that they did not have to pay for the 2017 tax cut and reform. It appears that PAYGO can no longer be considered an effective tool for imposing budget discipline. https://www.taxpolicycenter.org/brief... Obama Whitehouse 2010 Policy https://obamawhitehouse.archives.gov/... Scorecard mandated Cuts for 2022 Cuts coming in 2022 https://www.aha.org/fact-sheets/2021-... Republicans wanted these cuts to take affect https://www.americanprogress.org/issu... H.R. 1868, introduced by Reps. John Yarmuth, D-Ky., Richard Neal, D-Mass., Frank Pallone, D-N.J., and David Scott, D-Ga., extends the temporary Medicare sequester moratorium through the end of 2021 as well as prevent other “budgetary effects” meant to prevent the package from increasing the federal budget deficit. Had H.R. 1868 not passed Friday, Medicare alone stood to take a $36 billion hit by fiscal year 2022 to offset federal spending increases elsewhere