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[quote=Anonymous][quote=Anonymous]I'm not sure if this has anything to do with Pay as you go, but in the 90s, they passed cuts to Medicare(reduce growth rate in spending), mostly payments to hospitals I think.

Congress every year would override these cuts, but they are still part of the baseline.
They actually used these cuts as part of ObamaCare budgeted savings, even though everyone knew they would be overrridden.[/quote]

OMB letter (link is in the article)
"How Would Sequestration Affect Medicare and Other Programs,
Assuming That Funding Subject to Sequestration Remained Equal to the
Amounts in CBO’s January 2025 Baseline Projections?
Under S-PAYGO, reductions in Medicare spending are limited to 4 percent—
or an estimated $45 billion for fiscal year 2026. That would leave $185 billion
to be sequestered from the federal budget’s remaining direct spending
accounts in that year.
S-PAYGO exempts many large accounts, including those that provide funding
for Social Security and low-income programs. Therefore, in CBO’s
estimation, OMB would have roughly $120 billion in budgetary resources
available for cancellation in 2026—less than the remaining amount that would
be required to be sequestered"

How Would Medicare Be Affected After 2026?
The 4 percent maximum reduction in Medicare spending would apply to
sequestration orders for years after 2026. If OMB ordered a sequestration of
$230 billion for each year through 2034, the ordered reductions in Medicare 
spending would increase to about $75 billion in 2034 and would total roughly
$490 billion over the 2027–2034 period.
[b]How Would All Other Programs That Are Subject to Sequestration
Be Affected?
After accounting for the reduction in Medicare spending, the required
reduction in spending for other programs would exceed the estimated amount
of resources available to those programs in each year over the 2027–2034
period. [/b]If OMB sequestered all of the funding for those programs, the total
amounts would be less than the reductions required by S-PAYGO.
I hope this information is useful to you. Please contact me if you have further
questions.

I think the bottom line is that, in fact, the worst is yet to come.

[/quote]

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