The Ryan/Romney Plan for Medicare is Crony Capitalism At Its Worst

More welfare for Wall Street

The fact that Mitt Romney’s so-called plan to balance the budget includes offering millionaires an average $390,000 tax break should be enough to end any policy debate. But add in the fact that he would pay for wasteful giveaways to the richest Americans is by gutting Medicare and you have to wonder how anyone who isn’t a millionaire might vote for Mitt Romney.

Mitt Romney’s plan to voucherize Medicare raises the eligibility age to 67 and shifts costs to seniors, who will pay far more for health care — $6,600 a year on average. Despite this, Romney’s Medicare plan will still cost taxpayers $39,000,000,000,000 MORE than our current Medicare system because private care is so inefficient.

David Rosnick and Dean Baker explain:

Based on the CBO data provided, the waste far exceeds the savings to the government. Under traditional Medicare, the government is expected to spend about $6,600 in 2022 on a typical 65-year- old, and the beneficiary is expected to spend $4,600 (all numbers in 2011 dollars). Under the Ryan proposal, a voucher for the same 65-year old would cost the government $6,600, saving the government nothing. However, the total cost of purchasing Medicare-equivalent insurance would be $16,900 – more than 50 percent higher than the $11,200 spent by the government and beneficiary combined under traditional Medicare. The difference of $5,700 represents a gift to the private sector.

Ryan’s updated Medicare plan includes a sort of “public option,” which means that all seniors will pay more but, for the ones who chose the government plan, the extra costs will be absorbed by the tax payers.

Why do Romney and Ryan want to change Medicare, the second greatest government program ever created (just after Social Security)? They claim it’s because it’s going bankrupt, a bullshit claim that has been made since the sixties.

The Affordable Care Act cut waste out of Medicare and expanded benefits to seniors. The Romney/Ryan plan shifts costs to seniors and sends trillions in taxpayer money to Wall Street while raising the debt. Anyone who pretends that this is a fiscally conservative solution needs to get off the bath salts.

[CC image by DonkeyHotey]
  • labman57

    Romney, Ryan and their fellow health insurance lobby lackeys in the Republican Party are taking a “General MacArthur” approach to destroying our nation’s Medicare system.
    Their grand plan will not make it immediately die — they simply wants it to slowly fade away.
    … and with it the ability of future senior citizens to obtain affordable chronic condition treatment and preventative health care.

    Bottom line — most Congressional Republicans do not have the best interests of the vast majority of Americans at heart … and every day, more and more Americans are coming to this realization.

  • DrBillyKidd

    Seniors already cannot figure out how to manage their Medicare. Their children have to do it for them. Now, can you imagine handing grandma a coupon and “saying have at it?” Many experts say that the bankruptcies from sacking Medicare will creat massive senior homelessness.

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  • Hobbes83

    This is yet another fact that the GOP actively deny because they have an echo-chamber filled with propagandists and think-tanks that can shit out studies and numbers that have no basis in reality. It is demonstrably clear that national governments are much more efficient in paying for health care than private insurers, and that single-payer systems lead to higher life expectancy and more healthy lives. Its also a boon to corporations that compete globally because they no longer have to worry about healthcare premiums and plans as part of their overhead. Talk about cutting your nose off to spite your face.

  • Carly_EngageAmerica

    A Health Affairs study (http://bit.ly/MIzYve) showed that the full implementation of the health care reform law and an aging population will result in a significant increase in spending. According to the study, spending will jump 7.4% in 2014 when the health care law is scheduled to be fully implemented. This is partially due to the aging of the baby boomer population, which will result in greater consumption of expensive health care services and products.

    Also, the health care reform law will allow millions of Americans to gain coverage through subsidized insurance plans purchased through government-run exchanges, augmenting consumption.

    By 2021, health care spending is projected to be 19.6% of GDP. The government share of the spending also would be greater, at nearly 50%, mostly because of the anticipated growth in Medicare enrollment.

  • Nico

    As long as they have their horse elevators, who cares about seniors???

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