8 September 2012 0 Comments

Democratically Controlled Media Misleads: Paul Ryan and the Phony $6,400 Myth

The Democrats, who can never be trusted with your money, have been pounding Paul Ryan’s viable plan to reform Medicare as adding $6,400 to senior’s medical expenses.

Not true as WSJ 19 August explains.

In other words, the $6,400 has no relevance for any senior today. None. But it also is unlikely to have any relevance for any senior ever because CBO concedes that its number is highly uncertain and “will depend on the evolution of the health care and health insurance systems over time, which is hard to predict.” That’s for sure.

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The reason CBO can’t model the 2013 House budget and the Romney-Ryan plan is that they harness markets with competitive bidding. Congress’s budget gnomes can’t handle these dynamic forces.

So how would Ryan 2.0 work in practice?

Traditional Medicare and all private insurers in a region would make bids to cover seniors and compete for their business by offering the best value and prices. Then the government would give everyone a subsidy equal to the second-lowest bid.

If seniors chose that No. 2 option, whether it was Medicare or another plan, they’d break even and pay nothing extra out of pocket. If they picked the cheapest plan, they’d keep whatever was left over after the government subsidy—that is, they’d get a cash refund.” (Emphasis Added) READ MORE WSJ 19 August 2012

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