Representative Paul Ryan (R-Wis. 1st District), the Chairman of the House Budget Committee introduced his Path to Prosperity as the GOP budget proposal for 2012.
The budget proposal includes a number of “cuts to entitlement programs.” One entitlement program that Congressman Ryan would reform is Medicare.
We are just heading into the period when the first baby boomers will become eligible for Medicare. Currently Medicare is an open ended program, or more simply put, anyone 65 years or older qualifies for participation.
Providers, including doctors and hospitals, are reimbursed by the government for medical services to Medicare patients.
Abolishing Medicare
Under the Ryan plan Medicare as we know it would be abolished. The plan calls for the payment of subsidies to allow Medicare patients to buy private health insurance. The amount of the subsidy would differ depending on income. Of course, income for Medicare beneficiaries is traditionally vastly reduced as Americans retire.
The eligibility age for Medicare would also increase from 65 to 67. That change would take place in increments from 2022 until 2033. Americans who are 55 and younger will be impacted by the change.
Control of health care returned to the insurance companies
Under the Ryan plan seniors would shop for health insurance from private insurance companies. The Ryan plan call for this “shopping” to be done at health insurance exchanges which would be set up by each state.
State based health insurance exchanges are, of course, a key provision of the Affordable Care Act which Ryan is proposing to repeal in its entirety.
What is not clear or even addressed is the problem of putting eligibility to purchase health insurance back in the hands of the health insurance industry.
For older people the prospect of getting and paying for private health insurance is daunting. For instance, in Connecticut a PPO with a $5000 deductible would cost a 60-64 year old and spouse between $1400 and $1900 a month. And that cost presumes that they either are part of a company group plan or have no pre-existing conditions.
The plan to return control of access to health insurance companies without addressing the issue of eligibility and cost control is simply to return to the very pattern of abuse in place before the attempt at health care reform.
Remember most health insurance companies are first and foremost responsible to their shareholders for profits. Private health insurance companies have expenses which the Medicare program generally does not have. These include marketing costs and payment of dividends.
If the Affordable Care Act is repealed and not replaced with similar protections the Medical Loss Ratios will return to previous levels. This will mean less of the paid premium dollars will be used to pay for medical services.
Before control of health care is simply returned to the private carriers more thought should be given to controls that will allow all those seniors to actually get health insurance.
This is a bold and controversial proposal. It is important to make your voice heard.SUBSCRIBE here and post your comments and opinions.
Comments