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Before the election, Rep. Kevin McCarthy said that electing Mitt Romney would mean that Republicans have a mandate to overhaul Medicare: House Majority Whip Kevin McCarthy: Election is ‘Mandate’ to Overhaul Medicare:

House Republican Majority Whip Kevin McCarthy (R-CA) says electing Mitt Romney this fall means Republicans have a ‘mandate’ to overhaul Medicare. As McCarthy put it, “If there’s a mandate going through this election, it’s to save Medicare.” As I put it: When Republicans say “save Medicare” they mean end Medicare as we know it. They would keep a government program called Medicare but it would not be the Medicare that has existed for almost half a century. The Republican plan for Medicare is to turn it into a program designed to shortchange seniors while increasing profits for private insurance companies.

We have a single payer health care insurance program that works very well for senior citizens. We don’t need to hand Medicare over to private insurance. Republicans can continue to blame Democrats for doing nothing to “save Medicare” but Republicans are the “kill Medicare” party and they have been for decades.

If what he said on this Sunday's Meet the Press is any indication, McCarthy hasn't seemed to figure out that they lost. And we've already explained here why this trial balloon put out there by the administration, where it seems they've forgotten who won as well, is a really bad idea that needs to be pushed back against forcefully. As everyone explained, even partially privatizing Medicare is not going to "save" the program. It just makes the cost of health care coverage more expensive for seniors.

I was glad to see Sen. Dick Durbin say raising the age is off the table during this interview, but I wasn't thrilled about him offering up means testing. Digby has more on that here: Hot Air Trial Ballooning:

I have a sneaking feeling that Durbin is throwing up a smokescreen there (or he's been smoking some of that special Alan Simpson sensimilla.) He must know that the argument is that Obamacare will pick up the slack if they decide to raise the Medicare age. If he doesn't then he needs to find another line of work.

Even Mitt Romney's health care advisor, Avik Roy from the Manhattan Institute, knows that. Here's what he said on Up with Chris Hayes this morning (with Steve Kornacki subbing for Chris)

"I have to respond to this interesting hyperbole about Medicare death sentence. If you raise the retirement age for Medicare, we have the Affordable Care Act as the backstop. Everybody under 400% poverty level is still covered with the affordable care act in place. So what we are really talking about is means testing Medicare by raising the retirement age. People who are upper income, above 400% of the poverty level won't be subsidized if they're younger retirees. It's where entitlement reform should go, to expand it into the retiree population."

(Kornacki pointed out that ACA is being challenged so it's not exactly a backstop at this point, but he let the topic drop in favor of more masturbation over tax rates.)

It sounds as if Roy and Jonathan Chait may have found the bipartisan sweet spot for Obamacare. Privatize Medicare! Now that really is a Grand Bargain.

Before everyone gets into another tizzy about how shrill and unreasonable I'm being for taking this rumor seriously, let's have a little discussion of what a "trial balloon" is. It is, simply, a rumor that's purposefully spread during a negotiation in order to gauge the reaction. Therefore, it is important to react, not act all glib and self-assured that it could never happen. They want to know if you think this is a good idea, so if you don't you should say so. And you should say it in a shrill enough fashion that they know it's a very big deal, if you think it's a very big deal.

Transcript below the fold.

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I've seen a number of interviews with Rep. Peter DeFazio over the last week or so and all of them were very good, but this one was one of the more satisfying, because CNN's Erin Burnett finally got a little push back with her fearmongering over the "fiscal cliff" and playing concern troll for Wall Street. I was happy to see DeFazio get a chance to make a lot of very good points about these negotiations and what we should be focusing on to solve our deficit problems, and number one on that list is jobs.

As DeFazio rightfully noted, if we want to actually solve our deficit problem, we need to be getting Americans back to work and contributing to our tax base. And he did a really good job laying out the fact that raising the age for Medicare enrollment would, rather than save money, probably end up costing American taxpayers more, because you'd just be shifting costs from Medicare to the subsidies for the private insurance exchanges.

I was also happy to see him push back at the hysteria that "the markets are going to react badly" if some deal on this "fiscal cliff" isn't reached soon. As he noted, if there's real value there in those stocks, any changes in the market are going to be temporary and Congress should not be reacting to their threats out of fear as they have in the past.

Full transcript below the fold and more with his appearance on Ed Schultz's show earlier this week as well.

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Texas Gov. Rick Perry (R) on Monday said that his state would refuse to implement President Barack Obama's health care reform law because it was "like adding 1,000 people to the Titanic."

In a statement released on Monday, Perry said that he would not set up state health care exchanges and he would reject federal funds to expand Medicaid.

"If anyone had any doubt, we wanted to put it to bed that Texas wasn't going to be a part of expanding socializing of our medicine," the governor told Fox News host Jenna Lee. "So, we're not going to participate in exchanges, we're not going to expand Medicaid."

Lee noted that the federal government would set up state exchanges if Texas refused, allowing the feds to have more impact on the state's health care.

"The bottom line here is that Medicaid is a failed program," Perry opined. "To expand this program is not unlike adding 1,000 people to the Titanic. You're going to further drive this country into debt. ... We don't trust this administration and we don't trust Washington, D.C. to be able to deliver health care in our state. If they trusted us, they would basically block grant it back to the states and we would do a substantially better job than what you're going to see with these exchanges and with the expansion of Medicaid."

"According to a new federal government report -- I know you've seen this -- Texas has ranked last when it comes to health services provided by the state," the Fox News host pointed out. "The facts are one out of four Texans is without health insurance, one out of four Texans is on Medicare or Medicaid."

"We got some of the finest health care in the world," Perry insisted. "The idea that this federal government, which doesn't like Texas to begin with, to pick and choose and come up with some data and say Texas has the worse health care system in the world is just fake and false on its face."

"The real issue here is about freedom," he continued. "Every Texan has health care in this state. From the standpoint of having access to health care, every Texan has that. How we pay for it and how we deliver it should be our decision."

Lee wondered what Perry would say to small businesses that had migrated to Texas and now wanted to utilize the insurance exchanges to provide health care coverage for their employees.

"Well, I say to them that they moved to the state of Texas for freedom," the former Republican presidential candidate explained. "We believe in freedom and we believe that those small business should be able to make the best decisions."

Perry is the sixth governor to refuse to implement parts of the Affordable Care Act.



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We're hearing a lot of tough talk from Republicans as we did from LA Gov. Bobby Jindal on this Sunday's Meet the Press about how they're not going to cooperate at all in enacting provisions in the Affordable Care Act now that the Supreme Court has ruled on its Constitutionality.

Howard Dean did a nice job of pointing out that states are going to get the insurance exchanges whether they're willing to cooperate or not because the federal government will set them up if governors like Jindal refuse to, as he was promising here. He also explained how it didn't make any sense economically for them to refuse the money in the Medicaid expansion.

Once you have hospitals and businesses and voters getting upset with the politicians for saying they're going to refuse that money and they start hearing from them after a lot of this national dust up is over, we'll see what Jindal actually does. This is the same guy who was calling the stimulus plan a failure and then did this: Jindal takes credit for stimulus, presents constituents with jumbo-sized stimulus check.

Transcript below the fold.

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