“Several proposals from conservatives and liberals for Medicare reform… are based on a financing model called premium support. What that means: Medicare has a premium cost…. When the government makes a contribution (sometimes referred to as a defined contribution) toward paying your premium, that is called premium support. The difference with reform is that the government would no longer dictate to seniors which Medicare plan they would have to use. The government would still support the premium, but the seniors would have the option to choose from a variety of plans tailored to their needs, including traditional Medicare. The concept is already working in several areas of Medicare….”
“But two whoppers are still circulating let’s put them to rest once and for all.”
“1. Vouchercare”
“Vice President Joe Biden has described the Medicare reform proposal championed by Representative Paul Ryan (R-WI) and others as Vouchercare…. There is no major Medicare reform proposal, including the Ryan proposal, that would issue future senior citizens a voucher (a certificate or coupon or a check for a fixed dollar amount) and then force them to fend for themselves on their own in negotiating with health-insurance companies. It’s all scary nonsense.”
“It would provide direct payment from the government to a health plan of a persons choice, including traditional Medicare, if that was the patients choice.”
“Use of the word voucher, with the accompanying mental picture of confused seniors wandering around with coupons in their hands, is merely a rhetorical scare tactic. It has no basis in fact.”
“Under the left’s definition of vouchers, the existing Medicare drug benefit program is a voucher.”
“2. The $6,400 Question”
“You’ve likely heard that reforming Medicare would cost seniors $6,400 out of pocket. This charge is based on a Congressional Budget Office (CBO) analysis relating to an outdated version of Ryan’s budget proposal.”
“the CBO has … admitted that its estimates would be limited because it cannot account for the effects of competition on prices.”
“The most recent academic analysis indicates that introducing premium support into Medicare could save 9 percent in annual costs. ”
Two Liberal Whoppers on Medicare
Amy Payne October 2, 2012
http://blog.heritage.org/2012/10/02/morning-bell-two-liberal-whoppers-on-medicare/?roi=echo3-13295013953-9853612-dc3a09d2ee8b5bc8e3af379a98e3ac00&utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell