CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Blogs Beat the Press The Ryan Plan DOES Pose a Risk to Younger Americans, This is Not Just Something Democrats Say

The Ryan Plan DOES Pose a Risk to Younger Americans, This is Not Just Something Democrats Say

Print
Wednesday, 11 May 2011 04:47

The non-partisan Congressional Budget Office projects that the Ryan plan will cause the cost of buying Medicare-equivalent insurance policies to exceed the median income of retirees shortly after it is implemented. This means that an independent analyst has determined that the plan poses a risk to the security of those under age 55 who would be subject to Ryan's Medicare program.

Therefore the NYT is inaccurate when it reports that:

"Ms. Hochul, the Erie County clerk [a Democratic congressional candidate in a special election in upstate New York], argues that the Republican plan poses a risk to older residents."

This "risk" is not just something that Ms. Hochul argues, it is something that she is calling attention to, since this is a fact that has been determined by independent analysts. However the risk is actually to younger residents (those under age 55), not to  older residents who would be less affected by the Ryan plan. (It does leave in place the donut hole in the prescription drug benefit.)

Comments (4)Add Comment
Independent 'Facts' Don't Come From Government
written by izzatzo, May 11, 2011 6:37
This means that an independent analyst has determined that the plan poses a risk to the security of those under age 55 ...


Only a socialist economist like Baker would characterize estimates by the government as 'independent facts' compared to say objective facts from a privately funded organization like the Heritage Foundation.
...
written by kharris, May 11, 2011 8:24
I'm gonna assume that, since he mentioned Heritage in a laudatory way, izzatzo means his comment to be facetious, and leave it alone.

The Ryan plan does hurt the prospects of the under-55 crowd through turning medical insurance coverage into a small subsidy for the purchase of medical insurance. However, as I think the NYT points out today (?), Ryan's treatment of Medicaid does represent a threat to the welfare of the current over-55 crowd. The bulk of Medicaid payments go to seniors and the handicapped, not to the merely poor or to children. Seniors in need of residential care often receive Medicaid payments. So the NYT, or Hochul I guess, is right about posing a threat to the elderly. Just not the threat that is commonly claimed.
Mr.
written by Rogermac, May 11, 2011 9:56
Help! I must be missing something. I clicked on the link to find verification of this:

"The non-partisan Congressional Budget Office projects that the Ryan plan will cause the cost of buying Medicare equivalent insurance policies to exceed the median income of retirees shortly after it is implemented."

The referenced paper notes that "In 2022, the projected cost of purchasing a Medicare equivalent plan is equal to 35 percent of the median 65-year-old's income."

I remember the familiar adage that when you meet a contradiction you must make a distinction. But what is the distinction here?
Risk to 55-Plusers
written by ellen1910, May 11, 2011 11:23
As Third Way pointed out earlier last month, a slow evaporation of the pool of traditional Medicare beneficiaries (less than 50% by 2030) would result in an increase of doctors opting out of Medicare and turn traditional Medicare into a second-class system.

http://content.thirdway.org/publications/383/Third_Way_Memo_- _Medicare_in_the_Ryan_Budget_What_it_Would_Mean_for_You
.pdf

Write comment

(Only one link allowed per comment)

This content has been locked. You can no longer post any comments.

busy
 

CEPR.net
Support this blog, donate
Combined Federal Campaign #79613

About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

Archives