Why is Ryan's plan not keeping up with Medicare?
Because the Ryan plan is designed to restrain the growth of Medicare spending, subsidy increases may not keep up with premium increases over time, even for the second lowest-cost plan. So seniors may have to pay more in the future.
What is Ryan's plan?
This plan formed the heart of the Republicans' entitlement reform platform during last year's election, when Ryan ran as the GOP vice presidential candidate.
Do seniors get a subsidy for Medicare?
They receive a subsidy from the federal government to cover or offset the cost of their Medicare premium. The subsidy would cover the cost of the second-least-expensive private plan or the Medicare option, whichever is less, in the first year. So if seniors select pricier coverage, they would have to pay the difference in cost.
Does Obama want to cut Medicare?
Obama, who strongly opposes premium subsidies, wants to overhaul Medicare by cutting payments to drug companies and providers, while also making richer seniors and certain new enrollees pay more. Many liberals are concerned that seniors will wind up paying a lot more under the Ryan plan.
What Republicans Are Proposing
Perhaps the best document to use as a guideline for potential GOP changes to Medicare would be Paul Ryan’s proposal, titled “ A Better Way .” On his website, the Speaker of the House outlines the same changes to Medicare that he’s been offering for the last five years.
An Attempt to Avert Crisis
When former President Obama restructured Medicare with the ACA, he imposed taxes and other fees that helped to sustain Medicare Parts A and B until 2028. Right now, about 55 million Americans are enrolled in Medicare, and that number is expected to skyrocket as the Baby Boomer generation continues to age and retire.
Where is It All Headed?
Speaker Ryan’s goal is to get Medicare into a position where it’s sold on marketplaces similar to how the private healthcare industry works under Obamacare. His vision sees the federal government helping to offset some of the costs for seniors to pay for Medicare, but seniors would have much more freedom to choose what kind of coverage they want.
