By: Dan Reed, American Citizen
It’s important to note that conservative Republicans have opposed Social Security, Medicare, and Medicaid since each program was established! Part two of this three part Medicare report reviews the major components of the Republican Medicare Reform Plan, provides analysis of the premium support proposal by the CBO and the Kaiser Family Health Foundation, and presents the Democrats argument.
1. The
Republicans plan would cap Medicare payments at a rate slightly above inflation,
which is far less than the rate health care costs are rising – meaning
seniors would be forced to pay rising medical costs out of their social security
and retirement savings!
2. The
Republicans plan would phase out the nonprofit FICA system, which
directly reimburses doctors, hospitals, drug Corps, and medical equipment
suppliers.
3. The
Republicans plan would phase in direct federal payments to Private for-profit Insurance corporations, which seniors would be forced to choose from.
Republicans claim their “Medicare Reform Plan” would lower costs by
making health care consumers more judicious about their health care consumption!
However, most experts agree that health care is not a marketable product
that people can bargain for when needed! Instead, they explain that health care is a necessity
that people urgently need when they get sick! And, the most expensive care is
generally not optional, predictable, or negotiable when demanded!
Here’s an
example of judicious health care consumption: a person having a heart
attack would judiciously interview a few doctors and hospitals to get the
lowest cost before receiving treatment! If said person dies while being
judicious about their health care consumption, said person successfully lowers
their hospital costs and doctor fees! The
moral: “DON’T GET SICK, AND IF YOU DO, BE JUDICIOUS AND DIE
QUICKLY”! Economists call this market-based solution “Demand
Shedding”.
Analysis by the CBO
Analysis by the Congressional Budget Office (CBO), which does budgetary analysis for both parties in Congress, concluded that Medicare beneficiaries coming into the Republicans Health Premium Support System after 2022 would spend significantly more for heath care under the Republicans private insurance plan:
Analysis by the Congressional Budget Office (CBO), which does budgetary analysis for both parties in Congress, concluded that Medicare beneficiaries coming into the Republicans Health Premium Support System after 2022 would spend significantly more for heath care under the Republicans private insurance plan:
- Traditional nonprofit FICA Medicare costs much less than private health insurance premiums because private insurance companies have significantly higher administrative costs, pay higher hospital and doctor’s fees than Medicare, and need to make a profit.
- The Republicans proposed direct federal health premium support payments to private insurance corporations, would increase much more slowly than private insurance premium increases, leaving more for Medicare beneficiaries to pay out of their social security and pension savings.
The CBO estimates that net federal
premium support payments for a typical 65-year old would be $8,000, or 39%.
This means the total cost of providing health care benefits to a typical
65-year old in the Republican Medicare Reform Plan would be about $20,500 in
2022, which the Medicare beneficiary would pay $12,500 in out of pocket
costs! THIS IS IMPORTANT, because most Medicare
recipients live on a combined social security and pension of about $22,000 per
year!
Analysis by Kaiser Family Health
Foundation
Using CBO projections, the Kaiser Family Health Foundation did the math and determined that if a person who turned 65 in 2022 were to remain in the traditional Medicare system, their out of pocket costs would be just $5,630 – a full $6,870 less than it would be under the Republican reform proposal. Kaiser explains it would cost more money to provide benefits under the Republican proposal because private health insurance plans traditionally pay higher fees to health care providers: hospitals and doctors, than FICA Medicare does”, and private health insurance plans have significantly higher administrative costs and profit requirements.
Democrats Argument
Using CBO projections, the Kaiser Family Health Foundation did the math and determined that if a person who turned 65 in 2022 were to remain in the traditional Medicare system, their out of pocket costs would be just $5,630 – a full $6,870 less than it would be under the Republican reform proposal. Kaiser explains it would cost more money to provide benefits under the Republican proposal because private health insurance plans traditionally pay higher fees to health care providers: hospitals and doctors, than FICA Medicare does”, and private health insurance plans have significantly higher administrative costs and profit requirements.
Full Story: http://masscare.org |
Democrats argue that Republicans proposed “Health Insurance Premium Support” would not keep pace with rising health care costs because their health insurance support premiums would be linked to the consumer price index, which hasn’t grown nearly as fast as health care costs! Furthermore, Democrats argue the Republicans plan, which would make direct federal payments to private insurance corporations, amounts to a massive subsidy to private health insurance corporate profits!
The
Republican Medicare Reform proposal would surely reduce federal spending for Medicare! However, the
Republican plan leaves Medicare beneficiaries on the hook for significantly greater out-of-pocket insurance
premiums and rising medical costs than they would pay under the existing FICA
Medicare system. Furthermore, the Republican plan does absolutely nothing
to solve the core problem: the enormously high cost of health care in the
United States!
No comments:
Post a Comment
Add Your Comments In This Box