In it, but not of it. TPM DC

Hensarling To Dems: Want Higher Taxes? Agree To Partially Privatize Medicare

Newscom / Bill Clark

"I will give my Democratic colleagues credit for putting at least some reforms on the table, but fundamentally they do not solve the problem," Hensarling said. "If you don't like our plan, how about a bipartisan plan? We would be willing to negotiate around the Rivlin-Domenici Medicare plan -- it's not our version, it's a bipartisan version."

The plan he's referring to, authored by former CBO director and current Brookings scholar Alice Rivlin, and former Republican Sen. Pete Demonici, would fundamentally change the single-payer nature of Medicare. It would give seniors a choice between traditional government Medicare, or provide them with a voucher to buy insurance on a private market. It mimics in key ways a plan Newt Gingrich proposed in the 1990s, which he claimed would cause government Medicare to "wither on the vine." And it's part of Mitt Romney's campaign platform to win the GOP presidential nomination.

This is the type of concession Hensarling and Super Committee Republicans want to see before they'll agree to higher net tax revenue -- a huge policy shift Democrats aren't likely to take.

"I'm waiting for the Democrats to put fundamental reform on the table," Hensarling said. "I'm not going to negotiate against myself. That is one offer we have put on the table that they can accept. I'm not going to negotiate against myself.... I'm not rejecting any offer out of hand. I'm still waiting for a new offer to be put on the table."

About The Author


Brian Beutler is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight and the debt limit fight. He can be reached at