Twofer: Ryan’s Medicare Plan Saves Taxpayers $20 Billion and Reduces Seniors’ Premiums
Paul Ryan keeps making his Medicare reform proposal more politically palatable, while still saving money all around:
Ryan’s plan has gone through several versions, but all of them have been based on the old bipartisan idea of “premium support.” The idea was that instead of paying for senior citizens’ medical services directly, the federal government would help them purchase private coverage plans.
The CBO still projects savings for the federal government — $15 billion — but it shows that beneficiaries will pay less, too.
“The CBO still projects savings for the federal government — $15 billion — but it shows that beneficiaries will pay less, too.”
Cost effective for taxpayers and beneficiaries. Sounds like a great plan for Medicare.
“The idea was that instead of paying for senior citizens’ medical services directly, the federal government would help them purchase private coverage plans”
Anything that isn’t directly through the government is a good plan.
That’s why any government led health care initiative is likely not to work. Effective health care is keeping bureaucrats out of it.
“Under the old version, Democrats could argue that premium support wouldn’t work and the cap would cut seniors’ benefits. Now there is no cap to cut their benefits, and the CBO agrees with Ryan on the effects of premium support.”
Getting the CBO’s support hopefully means there is nothing that democrats can nitpick about. It’s democrat proof.
If only we had Ryan in the White House.
Then we would have some real, substantial change.
Conducting a full scale reform is always very hard to do, especially with a polarized congress. Although Ryan’s plan is increasingly sounder, it will overhaul the system again, something that the people are not ready to face again. In theory the plan might work, but it will not receive the people’s support.
Ryan’s plan sounds too good to be true. A better and cheaper healthcare system sounds unattainable, and if it gives people choice, that just sounds too utopic.
Ryan is employing the same technique Obama used to convince people to support ACA; promising unrealistic reforms that will work under very specific scenarios. Reforms that sound good on paper but that are almost impossible to implement.
Well if politicians aren’t going to reform something, what else are they going to do?
It does leave you wondering, “what’s the catch?”
Whether its Democrats or Republicans, there is always a catch.
Something may be missing in the Ryan plan at least in its initial presentation.
No insurance company with a brain would cover an 85 year old unless it received a large subsidy from Uncle Sam.
In countries like Denmark, there are risk adjustment funds that have their own premiums, on tip of the public premiums.
Will that be true in the Ryan plan? and if so, is it being counted?
Yes it is in the Ryan budget. However, it does not appear to be risk adjustment as administered in Medicare Advantage today, but explicitly different subsidies to seniors based on their health status.
Also, recall that the new Medicare doesn’t roll out for years, so there is plenty of time to iron out the details.