Republicans are struggling to find some way to claim that seniors will like Rep. Paul Ryans (R-WI) Medicare reform plan.
Ryans proposal shifts retirees to a premium support" model beginning in 2022. Seniors would get a defined contribution from the Medicare program and would be able to choose from a range of private plans that offer comprehensive Medicare-required coverage. The amount of the contribution about $15000 would grow at the rate of consumer prices.
Republicans claim this approach is similar to the very popular federal employees health insurance model and it is. But there is an even better example: Medicare Advantage.
Medicare Advantage (MA) was part of the 2003 Medicare prescription drug bill. Under the plan Medicare pays a defined contribution to a private health insurer which provides the senior with comprehensive Medicare-required coverage. Sound familiar?
Currently some 12.2 million seniors 25 percent of the Medicare population voluntarily choose to join an MA plan. And it is especially popular with low-income populations.
Now there are differences. The MA contribution is larger than under the Ryan plan but ObamaCare also reduces those contributions. And the Ryan contribution will likely grow slower than under MA. But those details can be worked out.
The point is that 12 million seniorsand growingcurrently choose something very similar to what Ryan proposes. Thats the best example for discussing whether seniors will or wont like what Ryan and Republicans are proposing.
Todays PolicyByte was written by IPI Resident Scholar Dr. Merrill Matthews.
