Wednesday, August 03, 2011

Would a "Committee" find the Ryan anti-Medicare plan appealing?

Reuters is analyzing the Tea Party “victory” in the recent skirmish in Congress, as an opportunity for “The Committee” to reform Medicare, and speculates about the Ryan Plan.

This plan would leave current retirees alone, but future retirees, at some age, would lose guaranteed Medicare coverage and have it replaced by a voucher system for purchasing private insurance. It’s pretty obvious that seniors could have issues with pre-existing conditions or “moral hazard” (and all the problems usually documented by Michael Moore), or could be means tested.

One can make the argument that seniors with means should not have the government pay their medical bills so they can pass on money to their kids. But the money saved this way would proportionately not be that large in trimming budget deficits.

In theory, similar arguments could be made about current beneficiaries. The practical resistance would come from the large percentage of seniors who vote in elections. But to an "Committee", it could sound more appealing. 

The Reuters story is here.

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