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Ryan's Plan for Medicare Is Huge Bet by GOP

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Under a plan called "premium support" Paul Ryan's U.S. budget proposal would have seniors choose a private insurance plan from a federally operated exchange. Each year the government would pay private insurers a specific amount to cover the cost of premiums with the rest borne by seniors. The total amount paid by the government would go up only at the rate of overall inflation, it would not go up at the higher rate of health care inflation. By doing this the government would take off the trillions of dollars of projected spending on health care that are largely the result of the higher inflation rate in health care costs. This higher inflation rate on health care costs is something that both parties have failed to control, and remains a major weakness in all health care proposals to date, including the Obama health care legislation. Allowed to continue growing at this rate when U.S. debt to GDP is nearing 100%, health care inflation costs pose major risks to the nation's finances.

The Republican U.S. Budget proposal made by Paul Ryan in 2012

09/16/2010

Paul Ryan, chairman of the House Budget Committee, has outlined a bold proposal to bring the U.S. budget deficits down from the $1 trillion level of the last 3 years. It would bring changes to Medicare and Medicaid, and reduce the individual and corporate income tax levels from 35% to 25%. Medicare would become a premium support system with the government paying the premium for an array of private insurance plans, and Medicaid would become a block grant system.

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