After Mitt Romney’s selection of Paul Ryan, one of the first major talking points the media and campaign jumped on was Ryan’s proposed budget in solving the deficit problem faced by the federal government.
Quickly at issue were both sides’ ideas for saving Medicare. On this tried and true battleground, the Republican Party chose to go on the offensive, and lashed out at President Obama’s streamlining of the program. Insisting that he had cut services to the tune of $700 billion dollars and had weakened the ability of Medicare to provide services to seniors in a campaign stop in Florida, Ryan promised to return the “lost” benefits if a Romney/Ryan victory were achieved.
Of course, as with many political rallies this election cycle, the truth is obscured by the partisan rhetoric of the campaign trial.
Paul Ryan asserts that President Obama has taken $700 billion from Medicare. Where he’s correct is that during writing of the ACA and Medicare reform, money was removed from one part of the Medicare operating budget and moved to another area of the budget to shore up new coverage for seniors. As Jamelle Bouie of The Washington Post lays out adroitly that “in crafting Medicare… this “cut” has benefitted the program.”
Paul Ryan has simply chosen to prey on the fears of the electorate by framing these changes as cuts. His claims about new taxes aimed at the middle class are equally disingenuous.
The Mitt Romney approved Ryan budget instead proposes a subsidized, privatized voucher system to combat the challenges faced with the demographic swing. This voucher system would cover the two cheapest plans on the market, thus providing Americans with a choice provided by competition in the free market. There are no guarantees of services, and little ability to combat the inflation present in the medical field. You would still have access to the traditional system, but a privatized voucher system is the core of Ryan’s proposed change to Medicare.
Unfortunately, as the value of voucher is set to scale only with the inflation in pricing, and not taking into account the advent of newer cutting edge techniques which carry a higher cost burden and the inflexibility of the free market on some services which are in high demand, this leads to a debate over how much cost would be passed to the dependent. Some estimate it could be as high as $6400, but without more specifics from Ryan, it is impossible to calculate.
Politifact wrote that “the absence of data means that analyzing the impact of the new Ryan plan is speculative.”
While Ryan’s demagoguery of the Obama plan may seem compelling to the uninformed, the truth remains that Medicare is growing more expensive either way. America is currently undergoing a societal demographic shift shared by many other developed countries. The population is aging as a group and more become eligible for Medicare.
This is leading to a flip in the contributor/dependent model. Regardless of which party is in power or plan used, the cost of Medicare will continue to rise unless a change in methodology for funding is addressed. Understanding that is critical to understanding the difference between President Obama’s ideas and the Romney-sponsored Ryan Medicare funding budget. Both sides talk about wanting to save Medicare, but which one do you believe. President Obama’s plan attempts to control these costs by addressing problems before they occur with preventative treatment and streamlining.
The Romney-Ryan plan simply throws vouchers at the problem and prays that the free market resolves the growing issue of medical costs in the country with no guarantee for future generations. Whether Medicare remains a universal safeguard for our senior citizens or becomes a privatized entity less beholden to the taxpayer is the crux of the debate.
Reprinted from State Senator Curt Thompson's (D-5th) blog. Also, check the Senator out on Facebook and Twitter.
Brian Crawford
4:57 pm on Tuesday, August 28, 2012
Medicare was created for a reason. Private insurance providers are not capable of offering affordable comprehensive health care plans for seniors. By all estimates the Ryan voucher scheme is destined to fail. Obamacare's $700 billion in Medicare savings (reduced payments to providers and fewer subsidies to supplementary insurance providers) extends Medicare's solvency for 10 years while not reducing benefits. The idea is that this gives us time to find a long term solution.
If the Republicans are successful in repealing Obamacare it will immediately throw Medicare into insolvency and will create a crisis allowing them to further pursue privatization efforts which is their ultimate goal. Don't forget that Ryan was the architect of GWB's failed attempt to privatize Social Security.
Jeff Banks
6:04 pm on Tuesday, August 28, 2012
You guys really believe that garbage about the 716 Billion that Obama cut out of Medicare. Don't you? When was the first time you saw a democrat save money in government? That's right. Never. Not if but WHEN Obama'a Deplorable Healthscare Joke is done away with, we can get down to real insurance improvement like inter-state commerce. Why is it again that you guys don't like the competition thing?
Ben
8:00 am on Wednesday, August 29, 2012
I have asked several Doctors that I go to about the new Obama Care Plan, they don't like it, because they say, they will have to treat more people for less pay, be more liable for medical mal practice than ever, to more people than ever before, at far as cut backs on the medications, they have already started, I have already seen that in my Rx's that I take,I have COPD, as per the new ObamaCare Insurance, the have already quit letting me have (1) of my Medications, I can pay for it myself, So I did, this was covered last year and several years ago also, I have heard other say the same thing, I am 70 Years old, I scared of getting older on this so called witch hunt care plan. Yes all Citizens of this country need medical care, some can afford it, some can not, but this is not the way to go,
John Cook
5:58 pm on Wednesday, August 29, 2012
When my wife's elederly mom was moving to Gwinnett, she could not find a doctor who took new medicare patients. It will get worse when your "reduced payments to providers" goes into effect.
Obama promised bipartisan solutions to problems. FAIL. Regarding the healthcare bill, he and the Democratic Party locked the Republicans out of the discussions. They literally locked the doors. That's a perfect example of being able to sit down and negotiate with anyone, eh? After he lost a majority in the House, he became a dictator ruling by Executive Order rather than negotiating for bipartisan solutions.
He promised he would negotiate a bipartisan solution to insolvency of Social Security. 4 years later no attempted discussions.
He promised a bipartisan solution to medicare insolvency. The Medicare Trustee Obama appointed said that it will be insolvent in less than 12 years. FAIL. He had no discussions.
Obama promised he could sit down and negotiate with anyone in the Middle East. A war regarding Iran's nuclear capability is imminent. All he has done is threaten Israel.
Obama cannot even get a budget passed by his own Democratic Senate! For three years Democratic Majority Leader Sen. Harry Reid has not even brought Obama's budget to the floor for a vote! FAIL! His budget must be totally unreasonable if he cannot even get his own Senate to approve it!
He cannot afford to run on his record of failed campaign promises, so he blames someone else. Totally ineffective!
John Cook
12:31 am on Thursday, August 30, 2012
Isn't it interesting that Obama said on ABC News that he cut medicare by more than 700 billion to pay for the Healthcare bill http://youtu.be/t5Ha7RNpn24 but now you have invented a clever double entry accounting method to try to make the cut disappear? In your opinion it may have "benefited the program," but it did not benefit the average American retired person who moves to a new community and tries to find a doctor who accepts new medicare patients. When you cut payments to medicare doctors, they quit accepting new patients. Period.
M.A.Dawson
7:17 pm on Tuesday, August 28, 2012
How do I go about getting my bias spew published here on Patch? Clearly by this hack piece there is a shortage of honest, intelligent writers. I wouldn't think it very difficult to find a home grown straight shooting journalist but apparently so.
Hardly fish wrapping quality. Glad I didn't print it.
Rubbish!!!
Tammy Osier
7:50 pm on Tuesday, August 28, 2012
Go to the home page and click on blogger posts and sign up! It's easy! Would love to have another conservative voice and two sided conversation. When conservatives post the facts, the liberals stay away I noticed. They only hash and rehash on what they write.
Steve Rausch
6:51 am on Wednesday, August 29, 2012
Unfortunately Senator Thompson, as with most lockstep Liberals, wouldn't know a fact if one slapped him in his face. His entire story is so full of democrat party talking points of mistruths that there isn't room for an intelligent discussion here.
We've seen 4 years of Obama change and our country has never been worse off! My vote is for anybody but incumbents.
Steve Rausch
Jack McClure
8:04 am on Wednesday, August 29, 2012
I believe any "reforms" in medicare would simply result in cost shifts either to the physicians/providers in the form of lower payments, to the states in the form of unfunded medicaid liabilities (which is where senator thompson would feel it), or to the people in the form of reduced services and higher out of pocket costs.
The problem here is three fold:
1) People don't actually know how much healthcare costs.
2) Healthcare reform, like it or not, requires everyone to have it in order for the entire pool to get cheaper.
3) People are non compliant in their medications and therapies. If folks would just do what their doctor says, we would have reduced costs.
Harriet
8:17 am on Wednesday, August 29, 2012
Well Jack, what if your doctor is wrong? I went to four doctors last year before I finally found one that knew what my issue was. The other three ms-diagnosed my x-rays and blood work. How do three doctors get it wrong? I spent over $700 just to find out what was wrong and how it needed to be treated. What is your answer to that? If I had done what the first doctor told me, I would have lost my legs by now.
Jack McClure
8:29 am on Wednesday, August 29, 2012
Harriet - you bring up an excellent point here. Before I adequately respond to your question, I need a few points of clarification:
1) Do you have insurance?
2) The $700 figure - would you say it's mostly office visit fees or tests?
3) Which tennant are you addressing with the problems I laid out? To me, since medicine is not a science, each doctor is going to have their own take on issues. You are bringing up a quality point, which is where justification for lower payments usually come from.
However, if you're misdiagnosed, is that malpractice? Are other tests wasteful?
Jack McClure
8:30 am on Wednesday, August 29, 2012
PS - I'm *VERY* glad you still have your legs.
Michael k
10:37 am on Wednesday, August 29, 2012
Some great comments here. And by great I mean useless.
If you have issue with any of the points made by the author, point them out and provide non-partisan facts that dispute them. Comments like "Democrats can't save money", "this is hackery", "are you afraid of private sector competition?" is the best you can come up with? Come on, use the Google and make a real argument.
For example: Mitt Romney made this claim in an Aug. 15, 2012, one-on-one interview with Tampa Bay’s WTSP 10 News.
"Under the president's plan, he cuts Medicare by $716 billion, takes that money out of the Medicare trust fund and uses it to pay for Obamacare,"
"I think this is something that people are just now focused on and find it very, very difficult to understand why he would cut Medicare for our current seniors."
Mitt is not telling the truth here. If you want to understand the truth about the $700B in question and don't want to do a lot of reading of CBO reports there is a video available from the Kaiser Family Foundation at:
http://kaiseredu.org/tutorials/Medicare-and-health-reform/player.html
Jack McClure
11:41 am on Wednesday, August 29, 2012
While I feel you should be doing your own research on these matters, here are a few articles to back up my points:
1) People don't actually know how much healthcare costs. (http://goo.gl/KvstI)
2) Healthcare reform, like it or not, requires everyone to have it in order for the entire pool to get cheaper. (Link: http://goo.gl/aKJKy)
3) People are non compliant in their medications and therapies. If folks would just do what their doctor says, we would have reduced costs. (Link: http://goo.gl/EolOv)
George Wilson
2:31 pm on Wednesday, August 29, 2012
The state of Georgia has continued its march backwards. Our Governor,Nathan Deal, announced his intention not to insure 650,000 Georgians under Medicaid. Even though the federal government under the Affordable Health Care Act would have paid 100% the first year and 90% the second year. Deal has joined the other two right wing "DixieRepubs" governors in Florida and Texas in denying health care insurance to their citizens. Outrageous and disgusting.
Larry Reid
2:39 pm on Wednesday, August 29, 2012
George! What are you talking about now? You sore losers come up with some of the craziest things. Are you saying my granny has no health coverage? All because of Deal? I voted for that guy. Are you surprised? I bet I know who you voted for again.
You guys are going to lose the white house too. You might as well go ahead and prepare yourself for that fact.
George Wilson
3:00 pm on Wednesday, August 29, 2012
@Larry Reid
Read todays paper...,this is medicaid not medicare.For the record,I Voted for Roy Barnes.I don't vote for crooks.
Larry Reid
3:05 pm on Wednesday, August 29, 2012
Holdon George. Tryin to get a date
Karsten Torch
5:24 pm on Wednesday, August 29, 2012
Couple of thoughts here. You bash the idea of vouchers because of the idea that medical care will get more expensive. This may be true, or may not. New technology could impact prices and drive them up, but it could just as easily have the opposite effect. Until that technology is presented, we don't really know. That being said, the cost effect would be the same either way - with us footing the entire bill like we do now, or using a true 'insurance' model like vouchers would do. Probably more so, actually, with us paying the entire amount.
Other thought, and I know this really chaps some people, but why do we automatically assume that once we become old we should never pay for anything again? We make all this noise about reducing Medicare for seniors, and Oh, How Will They Live? without ever asking the question about why we should keep paying for it at the levels we do. If there is an end to it at some point, it will encourage folks to make alternate arrangements for healthcare while they can. The voucher system works for me, makes sense.
What we need to do is retrain the American people to not rely on insurance as the end-all be-all of payments systems. Insurance is not supposed to cover 100% of your healthcare costs. Never was. Legislation forcing companies to cover more and more stuff just raises the prices....
Again,
Karsten Torch
5:31 pm on Wednesday, August 29, 2012
(not sure how "Again," got put at the end of there)
There is no logical explanation to anybody expecting their insurance coverage to pay for every bit of their birth control. Or regular office visits. We should learn to expect to cover the basics. If people treated auto insurnance like health insurance, our insurance companies would cover oil changes, tires, wiper blades. If we had to replace an engine, our insurance company would cover everything past our $500 deductible. And as a result, oil changes would cost us $75, wiper blades would be $110 each, and an engine would cost $60,000. Oh, and our coverage would probably be 10 times as expensive.
So yeah, I'd say it's time for some major changes. And time for people to stop feeling entitled. Just sayin....
George Wilson
5:43 pm on Wednesday, August 29, 2012
@Karsten Torch
Medicare is not free, my parents paid in for years and they still pay a premium of $200.00 per month and because they don't have a Medicare supplemental plan some of their medical care is paid out of pocket.
You don't shop around for medical tests and procedures. gee doc I'll have to get three quotes on that before you proceed...this is not the real world.
What does private insurance do? They take your money, deduct 30% (now 20%)because of the Affordable Health Care Act and fight to not pay your provider(Medicare only cost about 3% to administer).
All this Republican bull about vouchers is all about helping big insurance companies.
Karsten Torch
6:07 pm on Wednesday, August 29, 2012
yeah, look again at administrative costs. When you compare the real numbers, Medicare is actually higher. I'll post links tomorrow...gotta go home now....
John Cook
9:47 pm on Wednesday, August 29, 2012
High health costs are driven higher by Medicare. The Health Care Financeing Administration (HCFA pronounced HICK-fa) was created as a part of Pres. Johnson's war on poverty. Part of this brilliant plan has been price fixing and reduced payments to providers. As a result, the providers began to charge higher fees to everyone else in order to make payments on expensive educations, employeed, and equipment. You see, there is no free lunch--someone ends up having to pay for it!
Along with reduced payments for providers, the providers originally had to submit claims for payment on special forms with special coding system. Each doctor's office must pay for someone in their office to become a "medical billing expert" in order to learn how to properly code so payments are received. Then they must wait for payment. Then payment is denied, so they must re-submit using a different code, hoping they will finally be paid. Today payment must be submitted by computer in a special format. But government bureaucrats must justify their existence, so occasionally they change the coding system and the format for submitting the claims.
Provider payments are reduced, employees must be paid, costs to everyone else must go up. Everything government puts their finger into, they screw up! And the more intrusive government gets, the more screwed up it gets!
George Wilson
10:33 pm on Wednesday, August 29, 2012
@John Cook
Insurance companies use the same standard form and do the same thing. A uniform system saves time and money in processing claims.What is the difference between a big insurance bureaucrat and a government bureaucrat? One is trying to maximize profits and pay high executive salaries and their investors.Which costs less to administer?
Karsten Torch
9:08 am on Thursday, August 30, 2012
The private insurance costs less to administer. The thing about the government-run healthcare is that a lot of the costs are deferred off onto other programs. The IRS handles a lot of the work of Medicare, yet none of that winds up in the chart under administrative costs. You also have to keep in mind that those on Medicare, on average, spend far more on healthcare services in a year than others. They're older, and with them not controlling the purse strings, there's no shopping or self-control for treatments.
http://www.forbes.com/sites/aroy/2011/06/30/the-myth-of-medicares-low-administrative-costs/
http://www.medibid.com/blog/2011/05/medicare-vs-private-admin-costs-facts-stand/
This is yet another example of something the government can't do as well as private enterprise. There's plenty of ways to bring down the prices of healthcare. It just seems to me that people are not interested in actually doing any of them....
Michael k
1:15 pm on Thursday, August 30, 2012
@Karsten. I don't know that a Forbes columnist or a contributor to a website that advocates restoring market-based forces to medical care is the best source for unbiased information pertaining to whether or not private insurance costs less to administer. Biased? Perhaps yes, but certainly not unbiased.
There is a well-researched article on this topic posted on the Pulitzer Prize-winning web site PolitiFact.COM: http://www.politifact.com/truth-o-meter/statements/2011/may/30/barbara-boxer/barbara-boxer-says-medicare-overhead-far-lower-pri/
The article uses data compiled from many different sources including the conservative-leaning Heritage Foundation as well as the liberal-leaning Urban Institute.
You can read the details at the link but the overall premise of the conclusion is quite reasonable and common sense. It costs less to administer Medicare than it does to administer private insurance plans because private insurers have to account for profits. Also the pool of members across which to apply costs is very deep for Medicare whereas many private plans have smaller memberships to support and overhead would naturally be higher on a percentage cost per member basis.
George Wilson
12:40 pm on Saturday, September 1, 2012
@Michael K
Thanks for the information on Medicare administration vs private insurance costs.
Bob Chadwick
8:34 am on Monday, September 3, 2012
Michael,
Did you notice that Politico rated the article you rely on to support your argument as only half true? The bottom line is that X number of dollars is going to be spent on health care. The issue, as it seems increasingly so these days with all things political, is whether you believe the government or the private sector can do it better.
Bob
George Wilson
5:24 pm on Monday, September 3, 2012
Republican under Gov. Deal have their own version of a death panel. About 850 Georgians die each year because of a lack of health care insurance.Gov. Deal has decided to not insure 650,000 Georgians under Medicaid as provided for by "The Affordable Health Act". The Federal government would even pickup the tab. Deal has just sentenced some of his fellow Georgians to a death sentence.