Budget Battle Closes in on Medicare, Medicaid

BY Jason Kane  July 7, 2011 at 5:02 PM EST

Few details have emerged from the closed-door deficit reduction talks, but members of both parties now admit one thing: Changes could be on the way for Medicare and Medicaid. For the first time this week, President Obama seems poised to broker a deal that would cut the entitlement programs in exchange for tax hikes. Health industry officials nationwide are bracing for an unknown hit.

Mary Agnes Carey of Kaiser Health News has been covering the hand-wringing from Capitol Hill. She sat down with Hari Sreenivasan to discuss some of the proposals now circulating to wring cost-savings from both programs, and provide an update on a late-breaking study that suggests Medicaid’s impact on the health and financial stability of America’s poor may be much greater than conventional wisdom suggests.