Report: Romney/Ryan Plan Will Cost $60K More For Medicare

What's a mere $60,000 to a senior citizen on Social Security? The difference between life and death, that's what: The Romney/Ryan proposal to transform Medicare’s guaranteed benefit into a “premium support” structure for future retirees

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What's a mere $60,000 to a senior citizen on Social Security? The difference between life and death, that's what:

The Romney/Ryan proposal to transform Medicare’s guaranteed benefit into a “premium support” structure for future retirees could increase costs by almost $60,000 for seniors reaching the age of 65 in 2023, a new report from the Center for American Progress finds. Current seniors would also have to pay more for preventive, hospital, and physician services should Romney and Ryan repeal the Affordable Care Act, facing an increase in health spending of between $7,900 and $18,600 over the course of their retirement.

Beginning in 2023, Romney’s proposal — which is modeled heavily on Paul Ryan’s FY 2013 budget — would provide all retirees with a premium support subsidy to buy coverage from an exchange of private insurance plans or traditional Medicare. Private insurance plans in each geographical area would bid for how much they would charge to provide Medicare benefits and the premium subsidy would be tied to the premium of the plan with the second-lowest cost, or the premium for traditional Medicare—whichever is lower. If seniors choose a plan that costs more than the voucher, they will have to pay the difference. As a result, most seniors will have to spend more on coverage. Here are 5 reasons why:

1) Current seniors will pay more. The premium support structure does not kick in until 2023, so current seniors will remain in the existing Medicare program. But should Romney/Ryan repeal the Affordable Care Act’s savings, beneficiaries will face higher cost sharing and premiums (particularly for preventive services) and seniors who have received prescription drug discounts, will now pay more for their medications. What’s more, Romney/Ryan would lower Medicaid spending significantly beginning next year, shifting federal spending to states and beneficiaries, and increasing costs for the 9 million Medicare recipients who are dependent on Medicaid.

I'm disturbed by how many people don't know Medicaid is the program that pays for your elderly parent's nursing home care after their money runs out. They just don't know how the system works, and their ignorance could be very, very expensive for the rest of us.

About Susie Madrak

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