The Senate reconvened today, forgoing the traditional July 4 recess, in an attempt to reach a deal on the extension of the debt ceiling. The House is due back in session Wednesday. If lawmakers do not raise the debt ceiling before the August 2 deadline, the federal government will default on its obligations, which would cause havoc on the nation’s credit and economy. Congress may resort to a short-term deal to avoid default if a long term deal can not be reached by the deadline.
Talks between President Obama and Republican legislators to raise the $14.3 trillion debt limit have been stalled for nearly two weeks over new taxes and cuts to corporate subsidies. In addition, President Obama is considering hundreds of billions of dollars in cuts to Medicare and Medicaid as part of a deal to both raise the debt limit and close the deficit. The White House reportedly would be willing to make $340 billion in reductions to both programs over ten years—as long as Republicans agree to revenue increases. The Medicaid portion of that amount could be $100 billion.
As Medicaid is discussed in conjunction with the debt ceiling, it is imperative for ANCOR members to meet with their federal officials.Also, watch tomorrow for information on contacting the White House about federal Medicaid cuts.