Details of Sen. Tom Coburn's $9 trillion plan to balance the budget released

U.S. Sen. Tom Coburn, R-Muskogee, would change entitlements, end numerous tax loopholes and cut military spending by $1 trillion to balance the federal budget.
BY CHRIS CASTEEL ccasteel@opubco.com Published: July 18, 2011

Sen. Tom Coburn's deficit-reduction plan

Would save about $9 trillion over 10 years, including $3 trillion from entitlements, $3 trillion from government departments and agencies, $1 trillion from defense, $1 trillion from ending or modifying tax breaks and deductions, and $1 trillion in interest on the debt.

Would reduce the size of government by 25 percent over 10 years.

Would balance the budget within 10 years.

Medicare and Medicaid

Saves $2.64 trillion from the two health care programs over 10 years.

Creates a combined $550 annual deductible for Medicare's Part A (hospitalization) and Part B (physician services).

Caps out-of-pocket spending at $7,500 annually.

Prevents “Medigap” policies from covering first $500 of expenditures and limits coverage to 50 percent of next $5,000.

Gradually raises Medicare eligibility age to 67 by 2027, then to 69 by 2080.

Increases premiums for Medicare Part B by 2 percent a year for five years for all recipients.

Requires wealthier recipients to pay full premium costs for Medicare Part B and Part D (prescription drugs).

Repeals 2010 health care law provisions that would add millions more people to Medicaid.



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