LAWMAKERS PROPOSE COMMISSION TO RECOMMEND MEDICARE, MEDICAID REFORMS

Republican members of the House and Senate are proposing a federal commission to study entitlement spending, including Medicare and Medicaid, with an eye toward developing ways to lower the costs of these programs.

According to legislation, H.R.473 and S.304, sponsored by Rep. Frank Wolf (R-Va.) and Sen. George Voinovich (R-Ohio), the congressionally appointed 16-member group would assess these programs and develop recommendations to address the imbalance between long-term federal spending and projected revenue. The Securing America's Future Economy Commission would look to increase net national savings to promote domestic investment and economic growth. The group would also work to improve the budget process to place greater emphasis on long-term fiscal issues.

The commission would include current members of Congress, the director of the Congressional Budget Office and the secretary of the Department of Treasury.

Voinovich said the bill is a necessary step, given the country's financial situation. "America's fiscal situation is dire," he said. "Nothing can be off the table if we want to ensure our long-term prosperity and increase our competitiveness in the global marketplace."

The group would consider recommendations including: limiting the growth of entitlement spending; strengthening the safety net functions of these programs to ensure assistance to the neediest parts of society; changing the tax code; and providing ways to increase private savings.