The Future of Medicare

Rep. Paul Ryan and the President have put forth different plans for the future of Medicare. Both plans provide uncertainty for Medicare recipients. From a financial standpoint, it is clear that Medicare as we know it is unsustainable in the future, especially since Baby Boomers are reaching Medicare eligibility in huge numbers. Which plan is worse for seniors?

Ryan Plan

Ryan’s Path to Prosperity, which was passed by the U.S. House last week, would leave Medicare unchanged for Americans over 55. For those under 55, Medicare would change in that individuals would receive purchasing power to buy their own plans. Insurance companies would vie competitively for their business. Those who can afford more would receive less purchasing power from the government and those who need more assistance would receive more purchasing power. Some believe that Medicare recipients will pay more for their health care than under the current plan.

President’s Plan

Under Obamacare, an Independent Payment Advisory Board (IPAB) would determine levels of health care spending. Rich Lowry wrote in the National Review that: “What Pres. Barack Obama’s budget speech last week lacked in details, it made up for in an obnoxious faith in the surpassing wisdom of unelected experts.” Lowry points out that Obamacare will significantly squeeze Medicare through arbitrary reductions in payments to providers. What this means is fewer health care dollars available for patients. In his speech last week, the President proposed squeezing the program even further by “holding…cost growth…to GDP [gross domestic product] plus 0.5 percent beginning in 2018, through strengthening the Independent Payment Advisory Board,” says Lowry. The feared effect of this proposal is that providers will be driven out of the program and rationing of health care will result. Under the guise of “quality” and “efficiency,” doctors who defy the IPAB limits to provide lifesaving care will be disqualified from the insurance plans. Americans will be limited in the amount of money they can devote to their own health care.

Ryan’s plan envisions giving seniors more control over their health care, while the President’s decidedly results in less control and even potential denial of health care. Wisconsin Right to Life is not officially endorsing the Ryan plan. WRTL is definitely opposed to the President’s plan.

Barbara Lyons