Obama: Cut deficit, preserve Medicare

WASHINGTON, June 2 (UPI) -- U.S. President Barack Obama urged House Democrats Thursday to reduce the federal deficit but preserve Medicare, Minority Leader Nancy Pelosi, D-Calif., said.

Pelosi said the president asked congressional Democrats at a White House meeting to join him in "reducing the deficit while preserving Medicare," The Hill reported. Citing a Democratic aide, the publication said Pelosi made it clear no deal to raise the federal debt limit will include Medicare benefit cuts.

The Republican-led House last month voted in favor of a budget proposal by Rep. Paul Ryan, R-Wis., to restructure Medicaid that critics of the plan say would have the effect of replacing the healthcare program for seniors with a voucher system.

Assistant Leader James Clyburn, D-S.C., said Thursday Democratic leaders in the House want to cut the federal deficit but "it in a way that preserves the principles of our caucus."

"We will not take one back step on guaranteed benefits of the Medicare program," Rep. Bill Pascrell, D-N.J., said.

Rep. Peter Welch, D-Vt., said the president "didn't rule out minor adjustments" to Medicare and Social Security but he said Obama "was confident that we'd be successful in preserving the social safety net."

The meeting, along with one between the president and congressional Republicans Wednesday, took place amid an ongoing impasse between the parties on raising the debt limit. Moody's Investors Service said Thursday it could review the U.S. government's rating "for possible downgrade" if the limit is not raised soon.

"The heightened polarization over the debt limit has increased the odds of a short-lived default," the agency said.