The New Threat to Medicare, Medicaid, and Social Security
This article explains about the controversial budget proposal supported by Representative Paul Ryan a Republican from Wisconsin. The bill “The Path to Prosperity: Restoring America’s Promise” was originally approved by the House of Representatives in 2011 but the Senate quickly overruled the bill along party lines.
The main piece of the Ryan bill is the conversion of the defined benefits of Medicare to fundamentally a member contribution plan. According to this bill, in 2022 all individuals turning 65 would not receive Medicare's old guaranteed entitlement. As a replacement, the government would provide up to $8,000 as a premium sustenance which would then be used for the purchase …show more content…
When healthcare costs are moved to the aging population, their only option will be to spend their social security checks to compensation for the increased cost of Medicare. A present middle income wage worker that will retire in 2022 will have to dedicate 51 percent of their social security check to cover the cost of Medicare; that estimate increases by 90 percent and will expend a majority of the benefit for Medicare in 2037.
Ryan’s plan presumes that it will save Medicare from bankruptcy and repeals most of the Affordable Care Act that has had positive outcomes in reducing healthcare costs. This bill would also repeal the Independent Payment Advisory Board (IPAB), an independent panel of experts that endorse policies for avoiding increased expenditure in Medicare. This board forms policies and if not overruled by a Congressional vote, the IPAB introduces comprehensive measures for controlling cost.
This plan is a severe threat to our national entitlements; Medicare would be finished, the significance of social security would be destabilizing, and ACA would be repealed. Medicaid would be changed into a grant subsidy and would significantly decrease the federal disbursements to the states and causing negative impact on the ability to fund healthcare coverage for the poor. (Gorin, 2011).
Competitive …show more content…
Administrative pricing has been the standard method and healthcare providers have adapted to them but the process has made Medicare an entitlement system for the providers. This has led to increase of costs that are challenging to maintain and caused the cost information of healthcare services to flow away from Medicare and towards the healthcare providers. Competitive pricing has providers informing Medicare the cost of healthcare for the beneficiates. The incentives formed for the healthcare providers to submit proposals of cost that is near actual cost, rewards the low offers and punishes the high proposals. The significant difference concerning competitive and administrative pricing is competitive pricing associate’s rewards and penalties only to the cost submitted by providers instead of the amount of benefit provided. The economic discussion is the most convincing explanation for a competitive pricing model. The Center for Medicare and Medicaid Services (CMS) and Health Care Financing Administration (HCFA), for twenty five years have tried to establish a competitive pricing model in different areas of the Medicare benefit and have only struggled with strong resistance. The dilemma is that there is no political support for competitive pricing even though there is pressure to control
This article explains about the controversial budget proposal supported by Representative Paul Ryan a Republican from Wisconsin. The bill “The Path to Prosperity: Restoring America’s Promise” was originally approved by the House of Representatives in 2011 but the Senate quickly overruled the bill along party lines.
The main piece of the Ryan bill is the conversion of the defined benefits of Medicare to fundamentally a member contribution plan. According to this bill, in 2022 all individuals turning 65 would not receive Medicare's old guaranteed entitlement. As a replacement, the government would provide up to $8,000 as a premium sustenance which would then be used for the purchase …show more content…
When healthcare costs are moved to the aging population, their only option will be to spend their social security checks to compensation for the increased cost of Medicare. A present middle income wage worker that will retire in 2022 will have to dedicate 51 percent of their social security check to cover the cost of Medicare; that estimate increases by 90 percent and will expend a majority of the benefit for Medicare in 2037.
Ryan’s plan presumes that it will save Medicare from bankruptcy and repeals most of the Affordable Care Act that has had positive outcomes in reducing healthcare costs. This bill would also repeal the Independent Payment Advisory Board (IPAB), an independent panel of experts that endorse policies for avoiding increased expenditure in Medicare. This board forms policies and if not overruled by a Congressional vote, the IPAB introduces comprehensive measures for controlling cost.
This plan is a severe threat to our national entitlements; Medicare would be finished, the significance of social security would be destabilizing, and ACA would be repealed. Medicaid would be changed into a grant subsidy and would significantly decrease the federal disbursements to the states and causing negative impact on the ability to fund healthcare coverage for the poor. (Gorin, 2011).
Competitive …show more content…
Administrative pricing has been the standard method and healthcare providers have adapted to them but the process has made Medicare an entitlement system for the providers. This has led to increase of costs that are challenging to maintain and caused the cost information of healthcare services to flow away from Medicare and towards the healthcare providers. Competitive pricing has providers informing Medicare the cost of healthcare for the beneficiates. The incentives formed for the healthcare providers to submit proposals of cost that is near actual cost, rewards the low offers and punishes the high proposals. The significant difference concerning competitive and administrative pricing is competitive pricing associate’s rewards and penalties only to the cost submitted by providers instead of the amount of benefit provided. The economic discussion is the most convincing explanation for a competitive pricing model. The Center for Medicare and Medicaid Services (CMS) and Health Care Financing Administration (HCFA), for twenty five years have tried to establish a competitive pricing model in different areas of the Medicare benefit and have only struggled with strong resistance. The dilemma is that there is no political support for competitive pricing even though there is pressure to control