Wyden Snatches Defeat from Jaws of Victory on Medicare
Earlier this year, 235 GOP House members and 40 Republican Senators voted for the Paul Ryan budget and its plan to ration Medicare. By ending the traditional government insurance program and leaving the elderly with under-funded vouchers to purchase much more expensive coverage from private insurers, Ryan's Republicans would dramatically shift the cost burden to America's seniors. It's no wonder that the incredibly unpopular scheme put Medicare at the center of the 2012 election for Democrats and President Obama.
But now Oregon Democratic Senator Ron Wyden is putting that all at risk. Combing bad politics with even worse public policy, Wyden has joined with Congressman Ryan to propose a "bipartisan" plan to convert Medicare into a premium support plan in which the traditionally lower-cost system is just one option in a menu with private insurers. The result doesn't merely threaten to undermine Medicare as we know it. With one stroke, Ron Wyden essentially endorsed Mitt Romney's Medicare plan and with it, is helping to get vulnerable Republicans off the hook.
The Ryan-Wyden proposal, or "Ryden" plan, if you will, looks a lot like the Medicare prescription from last year's Domenici/Rivlin blueprint. Unlike Ryan's previous attempt to end Medicare as we know, Ryden maintains traditional fee-for-service government insurance as one option. As the New York Times explained:
Congress would establish an insurance exchange for Medicare beneficiaries. Private plans would compete with the traditional Medicare program and would have to provide benefits of the same or greater value. The federal contribution in each region would be based on the cost of the second-cheapest option, whether that was a private plan or traditional Medicare.
In addition, the growth of Medicare would be capped. In general, spending would not be allowed to increase more than the growth of the economy, plus one percentage point -- a slower rate of increase than Medicare has historically experienced.
Which is just one reason why Democrats hate the new Wyden initiative. Rep. Jim McDermott (D-WA) told Bloomberg News, I don't know why Ron Wyden is giving cover" to Ryan. " "For starters, this is bad policy and a complete political loser," one Democratic aide said. "On top of the terrible politics, they even admit that it dismantles Medicare but achieves no budgetary savings while doing so -- the worst of all worlds." The Obama White House, too, is worried:
"We are concerned that Wyden-Ryan, like Congressman Ryan's earlier proposal, would undermine, rather than strengthen, Medicare," said White House Communications Director Dan Pfeiffer. "The Wyden-Ryan scheme could, over time, cause the traditional Medicare program to "wither on the vine" because it would raise premiums, forcing many seniors to leave traditional Medicare and join private plans. And it would shift costs from the government to seniors. At the end of the day, this plan would end Medicare as we know it for millions of seniors. Wyden-Ryan is the wrong way to reform Medicare."
Republicans, on the other hand, are overjoyed. The reliably Republican Wall Street Journal calls it a "breakthrough." Current GOP presidential frontrunner Newt Gingrich, who in the 1990's famously declared he wanted to see Medicare "wither on the vine," described the proposal as a "very important breakthrough." As for his rival Mitt Romney, the Washington Times rightly noted that "Romney's plan is virtually identically to what Wyden and Ryan outlined today."
And that's not a good thing for the millions of Americans counting on Medicare to provide their health insurance in the future.





