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| Decatur, Ala. | Friday, May 24, 2013 |
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8/17/12
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Unraveling the debate on Medicare
Mitt Romney’s selection of U.S. Rep. Paul Ryan, R-Wis., as running mate brought the future of Medicare to the forefront of political debate.
Medicare has problems, but they are not major.
The per-capita cost of the program is dropping. Administrative costs are well below that of most insurance companies. The aging of the Baby Boomer population is its main threat, but even that is less dramatic than it might be because the program does not cover nursing home stays.
While it is true that President Barack Obama’s plan would cut Medicare costs by $716 billion, the claim is misleading. The projected reduction in Medicare costs do not come from a drop in benefits. In fact, his plan expands benefits by covering preventive services and filling the prescription drug donut hole.
The Affordable Care Act reduces projected Medicare payments to some insurance companies and health care providers, in part by focusing on health-care quality rather than procedures. The law also creates a Medicare cost control board.
Thus, the Obama plan finds savings without reducing benefits to Medicare recipients.
Both Romney and Ryan promise they will seek repeal of the Affordable Care Act, including the provisions designed to control Medicare costs.
Despite ending these cost controls, Ryan’s plan incorporates the law’s $716 billion in Medicare cuts. Romney has distanced himself from this part of the Ryan plan.
The GOP plan to reduce Medicare costs would transform the program from a defined-benefit plan to a defined-contribution plan. Instead of assuring people specified medical benefits when they reach 65, the program would provide them with vouchers they could use to purchase private insurance.
The Romney-Ryan plan is analogous to a change many employers are making away from pensions for their employees. Employers prefer 401(k) defined-contribution retirement plans because the risk of poor-performing investments is carried by the employee, not the employer.
Taxpayers are potential winners under the Romney-Ryan plan, because they are shifting financial risk to retirees. Insurance companies also are winners, as they gain a huge market.
The losers in the plan are Medicare recipients, who would bear the risk that medical costs rise faster than the value of the vouchers.
In that scenario, seniors would either have to pay for health care out of their pocket or do without.
Both the Obama and Romney plans reduce Medicare costs. Obama’s plan does so without cutting benefits. Romney’s plan places those benefits at risk.
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Under the Ryan plan, the individual vouchers would be adjusted to account for the health and income status of the beneficiary. This means the sicker/poorer Medicare recipients get more money. I would think the Libs would like this "progressive" plan...
... and did the DD Editor see this from an AP story being run it's own paper?
"Both would shift additional costs to beneficiaries. Obama has proposed higher deductibles for outpatient care, new copayments for home health, and policies to discourage the use of “Medigap” policies that can lower out-of-pocket costs — particularly for newly joining baby boomers."
The problems with romney plan is seniors with preexisting illnesses would be unable to buy insurance since they will repeal obamacare. The amount of money on voucher plan is not enough to purchase insurance even though the poor will be given more money on the voucher. Insurance companies will cherry pick and only insure seniors in the best health. Ryan is also the person behind privatizing social security, putting social security money in thestock market and virtually ending social security. Young people would no longer pay into traditional social security thereby ending the program.
"Ryan is also the person behind privatizing social security, putting social security money in thestock market and virtually ending social security. Young people would no longer pay into traditional social security thereby ending the program. "
YAY THAT!!! I'm older, so this doesn't apply to me but just think how much better off everybody will be, how much more money they can have for retirement if they aren't depending upon Social Security. Anything the government can do an individual can do 100 times better!!
And don't leave that "ending the program" unended. If it does go away, it will not change a thing for anybody 55 and over and will just provide more options for those 55 and younger.
Bubba, the Ryan Plan DOES allow seniors with pre-existing conditions to purchase health care with the voucher. I believe that info is contained in the link in my first post.
Fact Medicare goes broke in 11 years. Fact Medicare was cut To pay for Obamacare. Fact Social security taking in less than it pays out. Fact Obama cut funding for social security. Is it compassionate to let the programs we have millions dependent on just go broke? At least Republicans have offered plans to save the programs.
V.....fact Paul Ryan is a liar.......and your facts
are lies .......
V.....fact Paul Ryan is a liar.......and your facts
are lies .......
The Daily is blowing smoke again....You have to wonder about what they're smoking...
Bubba You want to back up which of the facts are untrue?
LOL Vanessa, please don't confuse O'Bubba with facts. He only understands MSNBC lib jibberish. The only fact he knows is that he wants to give away everyone else's money. O'Bubba, drink some more kool aid, put on your house shoes and get out and organize some community.
I don't believe Paul Ryan and Vaneesa's facts are lies.....Can anybody explain this?
Vanessa's fact are on the money. Romney and Ryan will help us salvage what is left of these programs and move young people into a solid way to be able to enjoy the benefits of Medicare and Social Security without ending these programs. Social Security was designed to be voluntary when it originated anyway. Liberals over the years have ruined both programs by ladening them with excessive obligations that had nothing to do with the original intent of the programs.