to the medicaid rolls. 17 million for the country, 485,000. here's what my governor said, the obama care medicaid expansion is a disaster for south carolina's budget with an opt-out provision which senator barrasso and myself proposed. did you have a voe in this health care debate? remember i was on the night before i was passed. i saw the bill a few hours before. remember that? >> greta: i do. >> no one has had a say in the country about obama health care. all done in this building behind closed doors. what senator barrasso and i have said, state like texas it could cost 24 billion dollars of new money to match the expansion. the state has to put dollars on the table to get federal government medicaid dollars. in my state one billion dollars will be required for to come up with this the next decade to get federal medicaid money. >> greta: you want to opt-out. here's the problem everybody being this is contributing to lower the cost if you opt-out. plus the problem that the press due to hhs has issued thousands of waivers. there will leave fiv

democrats don't want to hear about cuts to medicare and medicaid. is there any -- have you wired any of this ahead of time by working with democrats in congress and vetting some of these things before they went into the president's speech? >> certainly we've been in consultations with peeks and months about our overall economic ideas and proposals, the free trade agreement certainly with trade adjustment assistance to help workers affected by trade. we believe that we will get cooperation from republicans in the house and senate to move those free trade agreements and trade adjustment assistance through. we're confident about that. that's an important step to take. as for what the president said about his vision for long-term deficit and debt control, i was on your show talking about it. the president believes that we have to make tough choices. he will put forward when he does his specific proposals for the so-called supercommittee in congress and to congress generally for long-term deficit and debt reduction that will include adjustments to medica

democrats don't want to hear about cuts to medicare and medicaid. is there any -- have you wired any of this ahead of time by working with democrats in congress and vetting some of these things before they went into the president's speech? >> certainly we've been in consultations with peeks and months about our overall economic ideas and proposals, the free trade agreement certainly with trade adjustment assistance to help workers affected by trade. we believe that we will get cooperation from republicans in the house and senate to move those free trade agreements and trade adjustment assistance through. we're confident about that. that's an important step to take. as for what the president said about his vision for long-term deficit and debt control, i was on your show talking about it. the president believes that we have to make tough choices. he will put forward when he does his specific proposals for the so-called supercommittee in congress and to congress generally for long-term deficit and debt reduction that will include adjustments to medica

as americans, we have social security, we have medicare and medicaid.his e-mail went on, of course, to beg for money. your contribution for $100, $50 or even $25 will help us to send conservatives like marco all over the country. when we saw theç story, ed sho producers, we reached out to rubio to show up on this program tonight. his office gave a five-word response. he's not available. thanks. our producers told rubio's office the door will always be open any time, anyplace on the ed hshow, senator. you see, rubio is a political coward. he doesn't have the guts or the debates on this show, he has to hide elsewhere. he wants to basically play the victim. but i want to go back to his comments, because i want the audience of this show tonight to really consume, and i ask you to pay attention to every word in this sound bite. consume what this man says. here it is. >> these programs actually weakened us as a people. you see, almost and forever, it was institutions and society that assumed the role of taking care of one another. if someone was sick in your

in fact you rank 49 in this medicaid coverage of low income residents. isn't the uninsured problem because of decisions made by texans? >> i disagree with your analysis because we've had a request in to the federal government so we can 6 a medicaid waiver for years? >> the federal government has stopped us from having that medicaid waiver. allowing the state of texas or for that matter the other states that were making reference here to have them give more options to be able to give the optional, there is a menu of options we could have just like jon huntsman talked about that. is how we go forward with our health care. each state deciding how to deliver the healthcare. not one size fits all. the whole concept of not allowing the states to come up with the best idea about how to deliver healthcare in their state you. the fact is people continue to move to the state of texas, some of the highest rates in the country because we have created a state where opportunity is very much the worth of the day there for finding work and what have you. healthcare is p

talk about going after medicare, medicaid, corporate tax breaks, what's happening here?on the cheerleading side of it, he did great. i have to say he did great. his idea of pass this jobs bill now, every time he said it, john boehner looked a little more creeped out. he let the republicans know that's a message he's going to take all over the country and republicans are out of their comfort zone when they can't whine and complain. he threatened them, he said you whine and complain, i'll take this to the american people. most progressives want to hear him talk tough, talk about not shipping jobs overseas. if you ship jobs overseas, you don't get subsidies, government contracts and tax breaks. he needed to talk about the u.s. chamber of commerce attacking, trying to encourage globalization with nafta and maybe how that's not working for the american worker. those are things we wanted to hear. but overall, he was on his game. he is getting ready for the campaign. but the point is this, every now and then he does a little too much compromising. i thought maybe that's what to

talk about going after medicare, medicaid, corporate tax breaks, what's happening here?e of it, he did great. i have to say he did great. his idea of pass this jobs bill now, every time he said it, john boehner looked a little more creeped out. he let the republicans know that's a message he's going to take all over the country and republicans are out of their comfort zone when they can't whine and complain. he threatened them, he said you whine and complain, i'll take this to the american people. most progressives want to hear him talk tough, talk about not shipping jobs overseas. if you ship jobs overseas, you don't get subsidies, government contracts and tax breaks. he needed to talk about the u.s. chamber of commerce attacking, trying to encourage globalization with nafta and maybe how that's not working for the american worker. those are things we wanted to hear. but overall, he was on his game. he is getting ready for the campaign. but the point is this, every now and then he does a little too much compromising. i thought maybe that's what took place tonight. >> i

there were major differences between the plan and medicaid. it is not an entitlement program. we collect money through an increase in the tobacco tax that covers a significant fraction of our uninsured. that was by design so it would not eat the budget like it happened in many other states with open-ended entitlement programs. secondly, the principal difference is the program is self-directed. it goes back to things we were talking about earlier. these low income folks contribute to a low percentage of the income that they do have and the state puts the rest in an account. we trust them to make smart decisions for themselves. if they run through it all because of a bad health experience, they are completely covered on the other and. it is their money. guess what? they turned out to be very discerning consumers like anyone else. they use the emergency room far less because it is expensive. they are more likely to use preventive care and are more likely to ask for second opinions from physicians. the money that is left, and it is accumulating, is theirs. they can use it to pay d

medicaid and the uninsured is our guest. we've divided our phone lines between the insurer th ande uninsured. of course, you can always send a tweet, twitter.com/cspanwj. sharon on the insured line, you are for stop. calle -- first up. caller: back in 1999, i was paying $60, that worked for coverage. two years later, united healthcare reaised it. i got sick and i was applying for social security and medicare. for two years, i had no insurance at all. in another year, they moved it up again, at which time i had to drop. the drug coverage -- if that had not been for my mother, i would not have had it no insurance at all for those two years. guest: this at caller makes a great point about the challenges people face when they lose their jobs the caller mentioned tha cobra coverage, which allows you to continue your employer-based coverage. the challenge with coverage that when you are employed, typically the cost of the premium is shared between the worker and employer. however, once you go onto cobra, the worker, or ex-worker,

these changes are phased in slowly to strengthen medicare and medicaid overtime.hile we do need to reduce healthcare costs, i'm not going to allow that to be an excuse that leaves seniors at the mercy of the insurance industry. i'm not going to stand for it. so we will reform medicare and medicaid but we will not abandon the funt mental -- fundamental commitment. that includes our commitment to social security. i have said before social security is not the primary cause of the issue. the parties are gonna have to work on a separate track to strengthen social security for our children and grandchildren. we can reduce the budget, by reforming reforming government spending and by making modest adjustments to medicare and medicaid. but all of these reductions in spending by themselves will not solve our fiscal problems. we can't just cut our way out of this whole -- hout of this -- out of this hole. it's gonna take a balanced approach. if we're gonna make spending cuts, mown of which we wouldn't make if we weren't facing such large deficits, then it's only right that

we would not have got to the's carriers -- social security, medicaid and medicare.hey want to eliminate the grand bargain where we recognize we have to do things for people and help each other. they want to repeal the grand bargain and replace it with more tax cuts for the rich and war breaks for industry. >> do you view because the's decision to delay the anti-smog rules -- the president's decision to delay the anti-smog compromise? >> the white house intervened and decided to put it off. their argument was that in a couple of years there will be more science and they can be fined the rule. the white house also argued that one of the rules that the republicans want to repeal next week on the house floor would reduce pollution in one state that affects the air in another state. the state that is the victim in the area can come into compliance with the help based standards. let's make sure we get this in a state rule in place before we start setting standards. some areas will not be able to come into compliance. i understand the argument. they should have gone forwar

in fact you rank 49 in this medicaid coverage of low income residents. isn't the uninsured problem because of decisions made by texans? >> i disagree with your analysis because we've had a request in to the federal government so we can 6 a medicaid waiver for years? >> the federal government has stopped us from having that medicaid waiver. allowing the state of texas or for that matter the other states that were making reference here to have them give more options to be able to give the optional, there is a menu of options we could have just like jon huntsman talked about that. is how we go forward with our health care. each state deciding how to deliver the healthcare. not one size fits all. the whole concept of not allowing the states to come up with the best idea about how to deliver healthcare in their state you. the fact is people continue to move to the state of texas, some of the highest rates in the country because we have created a state where opportunity is very much the worth of the day there for finding work and what have you. healthcare is p

medicaid to allow mom and dad to stay in their own homes. there are a lot of reforms that can be undertaken if you want to figure out how to design a better product. and the president has got to go along with that. what's holding us back is the spending. you look at europe, they're out of control on spending. on the other side, i think that the notion that if you have torm but you get more revenues, i don't think people ought to be thinking about that as a tax increase. i don't. you know, get a flatter tax that will spur more economic growth and get rid of some of these unnecessary loop holes. but you can't take more revenues and dump it into more spending because that exass baits the problem of spending. so i don't preach all this for ideology. it just makes good sense. if you have too much debt and you get in trouble, if the cost of doing something is too high, you don't do it. that's why high taxes are bad. and if you take a look at ohio you see what we did. we had an $8 billion deficit. we didn't raise taxes. we would have become less co

with regard to discussion of long-term costs you mentioned medicare and medicaid and social security. medicare and medicaid deal with health care and health care costs are in a different boat than social security, in terms of long-term costs. >> the increases in spending are greater overtime then for social security. >> and social security starts to stabilize and stays constant in terms of cost to the federal government. >> roughly so. after the baby boom generation retired it roughly levels out. >> because you are dealing with facts -- the reality is medicare and medicaid are reimbursements or financing systems. if we were to cut benefits for seniors that doesn't mean their health care costs will drop. it shifts the cost into the pocket of the senior to pay for that care if medicare reduces what it reverses. >> it depends on the policy. there are some policies that share costs and reduce overall costs. >> thanks, sergeant friday. >> senator kyl. >> one question in the interests of time. i know you agree with senator toomey that there are other points of view regarding your argument t

we'll work with governors to make medicaid more efficient and accountable and we'll change the way we pay for health care. instead of just paying for procedures, providers will be paid more when they improve rumts. and such steps will save money and improve care. these changes are phased in slowly to strengthen medicare and medicaid over time because while we do need to reduce health care costs, i'm not going to allow that to be an excuse that turns it into a voucher program. i'm not going to stand for balancing the budget by reducing health care for poor children or those with disabilities. so, we will reform medicare and medicaid, but not abandon the fundamental commitment this country has kept for generations. that includes our commitment to social security. it is not the primary cause of our deficits, but it does face long-term challenges and both parties are going to need to work together on a separate track to strengthen social security for our children and grandchildr grandchildren. so, this is how we can reduce spending. by scouring the budget for every dime of inefficient, by

the federal government has stopped us from having that medicaid waiver.g the state of texas or for that matter the other states that were making -- that we're making reference to here, to have waivers give them more option to be able to give the options, there's a menu of options we could have, just like john huntsman talked about. that is how we go forward with our health care. each state deciding how they're going to deliver that health care. not one size fits all. i think this whole concept of not allowing the states to come up with the best ideas about how to deliver health care in their state. the fact is, people continue to move to the state of texas, some of the highest rates in the country because we've created a state where opportunity is very much the word of the day there, if you will, for finding work and what have you. our health care is part of that. our education is part of that. we are proud of what we put together in the state of texas. >> chris: governor romney, the other day in perry call romney care socialized medicine. he said it fail

but they're a little bit worried about his proposal for cuts to medicare and medicaid. they worry that that will give republicans license to push for even deeper cuts to those programs as a way to bring down the debt, scott. >> pelley: nancy and norah, look at something the president said this morning that really caught our attention. >> so the speaker says we can't have it my way or the highway, and then basically says my way or the highway. that's not smart. it's not right. >> pelley: norah, it sounds like the president is drawing his own line in the sand. i wonder, what do you think the prospects for compromise are now? >> reporter: i think the president has decided to stand on principle rather than pragmatism. he's thrown the idea of compromise out the window and really wants to try to win the battle for public opinion ahead of the 2012 presidential race. >> pelley: i wonder what you're hearing on capitol hill, nancy? >> reporter: it seems like the long standing s fraying at the edges. speaker boehner said it seems like sometimes he and the president are from two di

you have to reform medicare and medicaid in some sense. one way is give the medicare administration the authority to negotiate prescription drug prices the way the va does. save maybe 150 billion dollars over 10 years doing that. >> greta: why isn't that being done? >> because the drug companies don't like it. >> greta: there's plenty of time to change it. we first heard about this in the bush administration. since that time the democrats have had the house, senate and white house. you had a lot of chance. considered was an ill considered deal in the health care bill. >> greta: which white house? >> the obama white house. they said to the drug industry if you support the health care bill we won't go to the prescription drug negotiation. i think they were wrong. >> greta: the president said until a week from monday to layout his deficit plan to pay for this, right? >> he did. >> greta: then he says later on in the speech, americans are tired of waiting they can't wait any longer. i thought that is dumb you just told us a second ago you goin

he has difficulties with the democrats on medicare and medicaid. tax provisions where he wants it increase taxes, denot specify. republicans wouldn't go along with any of them. >> reverend al, all during the speech, i've been tweeting. i just noticed and pointed out -- i didn't just notice, i pointed out 90 bridges in his home district, boehner, like the bridge in minnesota that came down, collapsed. this will this infrastructure and tax breaks work? >> i think it will. when you see the tone the president set tonight, i think it is a brilliant tone he set. what he said, he talked not only about his $447 billion package, he not only talked about the fact that americans need to ride above their partisan differences, he talked about we need to see cars around the world made in america. he talked about, we can't let china do things that we can't do. he appealed it a new level of patriotism that will make some of the opposition look petty when they go home and not deal with some of the infrastructure disrepear pair and not deal with the jobs. i think wh

we have reduced medicaid spending significantly. tax increases in medicare cuts were cut to create three new entitlement programs. they have yet to take effect. according to our projections based on your most recent race line, those entitlement programs to cost the nation nearly $2 trillion over the first 10 years from 2014 to 2023. have you estimated the full 10- year cost for each of these entitlement programs, medicaid, health coverage subsidies for the 2014 to 20203 time when they are implemented? >> no, we have not. >> do you anticipate doing that at all? >> we produced estimates that were under concerts -- consideration when the law was considered. we provided rough estimates from that point in time. as the budget window moves out, we will end up with a 10-year budget window from 2014 to 2023. it is not obvious we will have an estimate of the effects of that legislation by itself. some pieces of that create new flows of money that did not exist before with insurance subsidies. that will become real flows of money. much of the

you have to reform medicare and medicaid in some sense. one way is give the medicare administration the authority to negotiate prescription drug prices the way the va does. save maybe 150 billion dollars over 10 years doing that. >> greta: why isn't that being done? >> because the drug companies don't like it. >> greta: there's plenty of time to change it. we first heard about this in the bush administration. since that time the democrats have had the house, senate and white house. you had a lot of chance. considered was an ill considered deal in the health care bill. >> greta: which white house? >> the obama white house. they said to the drug industry if you support the health care bill we won't go to the prescription drug negotiation. i think they were wrong. >> greta: the president said until a week from monday to layout his deficit plan to pay for this, right? >> he did. >> greta: then he says later on in the speech, americans are tired of waiting they can't wait any longer. i thought that is dumb you just told us a second ago you goin

is the medicare and medicaid expenditure -- if is the medicare and medicaid expenditure that is going to cause the problem. it pales in in significance compared to medicare and medicaid. there are a lot of things that we can do. and they do not require taking away promised benefits to people. for example, and one of many examples, we have to ask why do we spend about 50% of the medicare money on people who within six months of dying, now they don't all die, so for some there's a benefit, but there's no co hay attached to that. if we attach the co-pay and graduate it according 20 income, we would reduce -- >> okay, just because i have little time. how do you respond to the people that say in spite of all of this that we have considerably more debt to run up and the evidence of that is the appetite for and the low interest rate on treasury bills. >> the reason we have low interest rate is because the fed enforces it. if you look at where the pressure is coming from, look at the fact that the dollar has depreciated by about 15% against a weak currency like the euro and a larger percent a

against the proposed cuts to medicaid. congress is considering the major cuts as part of the effort to reduce the federal deficit. the group from oakland is among them. making the trip to the nation's capitol to protest. they say that lives of the disabled are on the line. >> we're talking about making cuts at the federal level, and it only makes it worse for california. they depend on medicaid and depend on other programs to -- to stay alive and to be productive. and -- in powerful numbers. >> and republican proposals would cut federal medicaid spending by almost 1 and a half trillion over the next 10 years. president obama's plan would cut medicaid spending by 73 billion over the next 10 years. and the care act is being credited with helping young children with health insurance. in 2009, 28% of 24-year-olds lacked health insurance, that number dropping to just over 24% in 2010. under health care reform, parents can keep their kids on their insurance until they turn 26 years old. in all other age groups under the age of 6

is medicaid. it depends on what your illness is and how you are being treated what program pays. if i am an administrator and i save someone from going to the hospital, i don't get credit for that and my books, the fed's credit because they did not pay for hospital admission. if we had a way of sharing the savings and giving both sides the right incentive to combine, we would be on the path to a much more robust system. our former colleagues at cbo were skeptical about how fast and how much, and rightfully so. how we pay for these patients is one of the important things that this commission could address. >> alice, do you think that program reduced should be required? is that something you looked at as forrester commission? the other one is any kind of government or agency reorganization. that is on our agenda of things that maybe we should consider. did you consider that on your commissions, and did it get you much? >> i am skeptical of mandated across-the-board program reviews. almost every admi

they said you have to wait two years to get medicaid and medicare. don't have guest: -- guest: i don't have expertise in that part of our programs. i suggest you reach out to the medicare folks and have them explain to you what is going on at there. i don't have an answer to you, to be honest. host: debra has an email. medicaid is as critical to the welfare of our country as medicare is and we have to do everything possible to prevent fraud in that area as well. there are a couple of important aspects to the anti-fraud measures in a medicaid. every state in the country as a medicaid fraud control unit, funded by a to jazz, and we provide oversight of those -- funded by hhs, and we provide oversight of those. they have tremendous expertise, particularly in the area of long-term care at protecting the interests of medicaid beneficiaries. there also are a large number of there also are a large number of frauds that cross from medicare into medicaid. when we bring cases against drug companies that abused the medicare program, we also bring in the medicai

, but the biggest single expense in medicaid, neither one of those. 20% of the medicaid recipients in my state account for 60% of the costs of the program, the elderly, parents, grandparents, great grandparents, in nursing homes and convalescence centers, on medicare and broke. stay in there because medicaid steps in and helps them keep things together. they have at least some care and some attention in the late years of their life. when we talk about cutting spending in medicaid, we are talking about hurting the most vulnerable people in america. children, like the kids of that single mom that i met, those who need prenatal care so their babies will be healthy, and of course the elderly who are stuck in that position. the same thing is true with medicare. i understand medicare costs are going up dramatically. i also understand the number of people under social security and medicare is going to rise as baby boomers reach that age, but we have to take care that at the end of the day, we protect the basic premiums and benefits that are presently available under medicare. for a lot of am

we will work with governors to make medicaid more efficient and more accountable. and we will change the way we pay for health care. instead of just paying for procedures, providers will be paid more when they improve results -- and such steps will save money and improve care. these changes are phased in slowly to strengthen medicare and medicaid over time. because while we do need to reduce health-care costs, i am not going to allow that to be an excuse for turning medicare into a voucher program that leaves seniors at the mercy of the insurance industry. and i am not going to stand for balancing the budget by denying or reducing health care for poor children or those with disabilities. medicaid, but we will not abandon the fundamental commitment that this country has kept for generations. and by the way, that includes our commitment to social security. i have said before, social security is not the primary cause of our deficits, but it does face long-term challenges as our country grows older. and both parties are going to need to work together on a separate trac

also included, $580 billion in mandatory cuts to programs like medicare and medicaid. another 1.1 trillion in savings that will come from winding down wars in iraq and afghanistan. the president's plan doesn't include changes to social security or eligibility age, both of which are fiercely oppose he by democrats and many republicans as well. meanwhiling with republicanes in the battle ground state of pennsylvania are thinking of changing why electoral votes are awarded in the presidential election. it would be a dramatic move that could hurt president obama in 2012 or potentially back fire on the gop. i'm going to get to much more on that part of the story coming up. but i want republican reaction to what's coming up right now. republican reaction to the president's latest deficit reduction initiative. our congressional correspondent kate bolduan is standing by with that. kate? >> hi, wolf. top republicans today calling the president's proposal class warfare. that is just one way house speaker john boehner described the president's deficit reduction plan as he dismiss

we are going to abolish medicare and medicaid., that all comes under the rhetoric as we hate the government, but the reality is for -- and we're going to give huge tax breaks to the wealthy. the reality is we, ie right wing extremists believe that what society is about is allowing the big money interests and the wealthy to have all kinds of power, all kinds of privileges, but if you're in the middle class or if you're working person, forget about it. you're on your own, and if you get sick and you don't have any health insurance guess what. this is what they are saying. you are going to die. that's it, and i have to respect their honesty in saying it. that is their politics. that is what they believe. forget about medicare. forget about medicaid. >> who started the new religion that taxes and government are bad? they now treat taxes, these abolitionists, the way antebellum republicans talked about slavery, like it was an essential evil. >> absolutely. >> when did that start? >> what you got is you got some well-funded folks which

need transformational reforms to our budget processes and controls, to social security, medicare, medicaid, and other healthcare spending, to defense and other spending, as well as comprehensive tax reform. and we need it soon, because the clock is ticking, and time is not working in our favor. >> i would say to members of both parties, you were elected to make tough decisions. you were elected to provide leadership for this country in tough times. we're coming to a point that you're being put to the test. it is critically important that you work together, and in fact, you've got to watch each other's back. this shouldn't have become so political that it's not a solvable problem. >> if the supercommittee fails, it will a failure of the congress and our country. we want the country at the precipice of default in paying our debt. that undermines confidence here at home and around the world. i've talked to numerous business leaders, large and small, who have indicated to me that the success of the debt reduction committee is critical if we're going to have confidence in america's ability to m

they don't care about medicare or medicaid or student loans. this is the way they can help. >> the buffett rule, making sure that people in the very high-income brackets pay the same percentage as people in the middle classes pay. how do you do that? how do you bring that fight to the country and win? >> oh, i think if the president should bring it to the country, and i believe he will, he will win. and that's something that i believed for a long time. i believed it back in december. the bottom line is, 59% of republicans think very well-to-do people should pay more in taxes. and you just have a small group that dominates the republican party apparatus that's against this, but the american people, liberal, moderate, and conservative are not against it. they're for it. so if you go to the country, you will never get this done by simply asking republicans to do it. but if you go to the country and change people's minds, you can get it done. and i think that's what the president will relish doing over the next month. >> do you think the public kno

i will be on medicaid next year.hose of us who are on medicare are not going to be affected too much. i do have significant concerns over the long-term solvency, but i am glad that he is proposing to do a little bit. this is tough, coming from a democrat like me, but there is waste in the government bureaucracy. just do not take it all from medicare and the few other things that he did. i kind of like his tone, but the tactics, but it's not just applaud the fact that we are slamming it to the wealthy. let's say that we are doing it for a reason, which is long term deficit reduction. host: we have more on the president's plan. >> structural reforms to reduce the cost of health care. keep in mind we have already included a number of reforms in the health care law, which will go a long way to controlling these costs. but we will have to do a little bit more. this changes some of the incentives that often lead to deficit health care costs. it makes prescriptions more affordable. we will work with donors to make medicare

because this category of drugs is a substantial expense for the medicaid program. >> what's the cost between haldol and the new drug that came out? >> it's a difference between haldol and a entire category, the a typical antisigh cotics. it's a many expense. that doesn't mean haldol is the right drug for every patient but what this study demonstrate said when you look at a large population, for a substantial number of patients, the older now available as a generic drug, is in fact more effective at controlling symptoms than the newer category of drugs. so it just speaks to the issue of first of all, the treatment needs to be at a lord to the individua and that if -- tailored -- we need to enter into the prescribing process with an open mind whether in fact this new drug offers any advantage whatsoever to our patients. >> the cost of the treatment will drop by as much as 80%. >> correct. >> and you get the same effect right? >> correct. >> that's really quite dramatic. in fact, it led an editorial writer for the british study, his name is jeffrey lieberman, a researcher in the trial,

the nearly $3 trillion proposal calls for reduced spending on medicare and medicaid. it does not touch social security. it proposes $1.5 billion in tax revenues on the wealthiest americans. speaker john boehner says that's not a good idea. >> at a time when it's spending that's out of control, giving the term government more money would be like giving a cocaine addict, all right, more cocaine. >> the president is threatening to veto any plan sent to him that cuts medicare and medicaid but does not raise taxes on wealthy americans. >> the speaker says we can't have it my way or the highway and then basically says, my way or the highway. that's not smart. it's not right. >> speaking in the rose garden yesterday, the president said we can't just cut our way out of this hole. >>> a tenth person has died as a result of a crash of a world war ii era plane during an air race in reno. investigator are now searching new video of the crash. this video of a vintage fighter -- unbelievable -- shows it slamming into a crowded grand stand friday. investigators are hoping it will he

meditate between 1999 -- 2010 medi -- medicaid between 1999 and 2010 rose to 15.9%. the children's health insurance program has been the one that has grown particularly fast over the last decade. host: two more charts i want to quickly point out. you divide it by race and income. what didou find bys? the other thing to point out is that since 1999, both the rates for whites and blacks have increased in this country. : the >> if enacted, would help struggling homeowners refinance their loans. they were followed by several panels of witnesses who spoke about the current state of the housing and rental markets. this is about an hour and 45 minutes. >> the banking subcommittee on housing transportation will come to order. i was trying to give a little time to my colleagues who will be in our first panel. i'm sure they are on their way. i will start off with their opening statements and hopefully by then they will have arrived and we'll recognize them. we've got a very robust agenda here. want to hear from all the expertise that we've assembled and try to move it along. s

millions of americans rely on medicare, medicaid for their retirement. they have paid for this benefit during their working years they have earned it. with an aging population, rising health-care costs we are spending too fast to sustain. if we do not support it it it will not be there when future retirement and wereretirs need it. i am also, and... (apuse) (cheers & applause) am i am also well aware that much trouble against do not believe that we should raise taxes on the most wealthy and can afford it. but here's what every american knows. while most americans in this country struggled to make ends meet some of the most fluent citizens and profitable corporations enjoy tax benefits and loopholes that nobody else gets. right now warren buffett pays a lower tax rate than his secretary. and outrage that he is asked us to fix. we need a tax code were everyone gets a fair shake. everybody get pays their fair share. >> by the way i think the best of more than majority of the vast majority of the wealthiest americans will help to get our house in order and a

>> the other programs are medicaid. the insurance program and subsidies to exchanges on some smaller spending grew >> long- term care entitlement? >> the long-term care entitlement as you recall actually raises money for the government in the first decade of its life. i do not know of that has been netted out here or not. i do not think so, actually. one can see from the picture that the largest increase as a share of gdp or the coming decade among these three categories is the other major health care programs followed by social security and medicaid. that is principally, i think, because of a great increase in a number of beneficiaries from the expansion enacted last year and a continued sharp increases in costs for beneficiaries. what's in your prepared testimony before the president's commission, you also included a charge. if we could pull that up now. everybody has a copy of the chart in their desk and there packet which shows real gdp per capita under different economic conditions. you'll notice under the alternat

like i say, we have been praised for what we've done with medicaid. we have integrated mental health and physical health, which saves money. we have gotten to the point, where like they say, we have improved the balance between home care and nursing home care. we do a lot of things here. we just sold -- we privatized one of our prisons. we believe at the end of the day, our prisons will be safer, more efficiently run. why do people do it before? politics. politics. if you look problems in the eye and you begin to deal with them honestly, you not only confront the problems, you get support. >> what about deadlines? >> that is like asking me to predict the weather. i have no idea, kate. i don't get the whole thing, to tell you the truth. i don't think we should be raising taxes. we went through a government shutdown. then we sat down with the clinton administration and we worked it out. we cut taxes. not as much as we wanted to, but we ended up with a balanced we ended up with a balanced budget and ended up paying down the most debt in our history, and

by making modest adjustments to medicare and medicaid. but all of these reductions in spending by themselves will not solve our fiscal problems. we cannot just cut our way out of this whole, it will take a balanced approach. if we're going to make spending cuts many of which we would not make a viewer not facing such budget deficits, then it is only right that we ask everyone to pay their fair share. in the last week, the speaker of the house john boehner gave a speech about the economy. to his credit, he made the point that we cannot afford the kind of politics that says it is my way or the highway. i was encouraged by that. here's the problem -- in the same speech, he also came out against any plan to cut the deficit that includes any additional revenues whatsoever. he says, and i'm quoting him. ande's only one option, that option and only option relies entirely on cuts. that means a surrendering to research necessary to keep america ahead of the technological edge and allowing our critical public assets like bridges and airports and hi