NYT Claims Increasing Bipartisan Support for Plans that Could Raise the Cost of Medicare Policies by Trillion

The NYT claims that plans that could raise the cost of Medicare equivalent policies for seniors by $34 trillion are gaining increasing support in Congress. These plans involve replacing Medicare with a voucher. This leads to higher costs both because the administrative costs of private plans are far higher than Medicare and they are likely to be less effective in controlling costs.

The Congressional Budget Official projected that a Republican plan along these lines, that was approved by House earlier in this year, would raise the cost of Medicare equivalent polices by $34 trillion over the program's 75-year planning horizon. While this plan would save the government money by reducing its payments for Medicare, it would mean that future generations of workers would pay far more for health care in their retirement. The cost of Medicare equivalent policies would far exceed the typical retiree's income by 2050.

It would have been helpful if this article had pointed out that these proposals imply both a huge increase in health care costs to beneficiaries and an increase in costs to the country as whole. Virtually all research shows that these sorts of plans will make the country's health care system considerably less efficient.

Newt Gingrich Can Do Medicare Vouchers for Half the Cost
written by izzatzo, November 25, 2011 4:23

Exactly. Let Newt Gingrich fix Medicare at half the cost for only $16T they way he did in 2003 with Medicare Part D.

http://capitalgainsandgames.com/blog/bruce-bartlett/2423/how-newt-gingrich-added-16-trillion-national-debt?

Stupid liberals.

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written by kharris, November 25, 2011 8:07

This seems oddly naive, even for the NYT. Ryan's Medicare voucher plan, which was supported by every (?) Republican House member, proved to be the biggest single political mistake by the GOP during this Congress. Now, the NYT tells us that Democrats, who used the GOP vote with great success in off-cycle elections, are coming around to support a Ryan-like plan. May Republicans told the NYT that Democrats support the plan?

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written by ellis, November 25, 2011 9:50

Isn't it a riot? The Democrats play to their electoral base by attacking the Ryan plan, even though they really agree with it. The reason is that the insurance companies want a much bigger piece of the Medicare pie, and the Democrats are there get it for them -- just like their Republican twins.
As usual, all our liberal champions can say is that this voucher plan is not cost effective. Oh, really? Are you sure? Maybe you can get a job in the next Obama administration.

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written by Jeri, November 25, 2011 10:57

I'd have been more impressed with the NYT article if they had mentioned the name of a few Democrats apart from Alice Rivlin who like this idea. They also might have pointed out that costs for private-sector insurance are rising faster than Medicare's costs and that the administrative costs for running Medicare are far lower than those of private insurance companies. Oh, wait, that's right--it's better to run a scare headline and a thinly source article, rather than inform people. My bad.

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written by RWB, November 25, 2011 12:33

This will never happen. Once the Democrats adopt the Republican plan, the Republicans will line up against it.

Premium support has always had centrist democratic support
written by jayackroyd, November 25, 2011 3:31

Jeri

There are details here, http://bit.ly/ik1oNL but PPI, the Third Way and other centrist dem think tanks and politicians are advocates of premium support. Yglesias and Ezra have often pointed out that premium support for Medicare is just extending the PPACA to the elderly and is a good compromise for both parties.

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NO
written by VikingRN, November 25, 2011 11:49

I smell a planted policy trial balloon by a DINO. Why on earth would we give 30% of medicare dollars to the pvt insurance thieves?

Medicare Advantage is far more expensive than FFS medicare. One democratic policy member was cited in the article.

I just tweeted my opinion of #hellno because this is truly horrible policy.

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written by jamzo, November 26, 2011 9:14

seems like a big post-expected-super committee failure GOP initiative to continue to divert attention from extension of bush tax cuts moment facing administration and congress

Notice the names
written by Ben, November 26, 2011 5:16

Not one name of any Dem that anyone would actually vote for. This is a total sham from the Third Way types. The guys who spend their time thinking up policies that insure that no Dems get elected to anything.

NYT Claims Increasing Bipartisan Support for Plans that Could Raise the Cost of Medicare Policies by $34 Trillion

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