Comments on: More on the Medicare Dust-Up

By: Greg Levy

Greg Levy — Wed, 22 Aug 2012 15:24:38 +0000

I heard an interesting piece on NPR regarding Medicare Fraud investigations and how provisions and support in the ACA actually strengthen and modernize compliance and fraud prevention. They pointed out that the “savings” in fraud prevention and prosecution (estimated at $65B per year of fraudulent paymnets) could possibly offset the amount of money invested in the new measures. Is that worth talking about on your blog?

I appreciate all you do – in making the wonky stuff available and understandable for the “rest” of us. ;o)

By: Mike

Mike — Thu, 16 Aug 2012 21:18:14 +0000

But the Ryan budget doesn’t actually remove those costs cuts, does it? I’ve read that they’re part of Ryan’s budget in addition to the benefit cuts he proposed.

Have I misread? I mean, I saw it on the internet so it has to be true.

By: John Nail

John Nail — Thu, 16 Aug 2012 15:37:23 +0000

The other salient point here is on the Ryan Budget cutting Medicaid 30% and block granting it. 6 million seniors rely on Medicaid for nursing home payments and that is about 1/4 of all Medicaid spending.

So Romney Ryan actually cut benefits immediately for current seniors by ending Obamacare thus eliminating the preventative care benefit that 16M used so far this year, stop closing the RX donut hole which saved seniors $4B already in 2012, and by cutting Medicaid endanger the welfare of 6 million seniors in nursing homes.

Then by changing the Medicare eligibility age to 67 they throw tens of billions of dollars onto the private sector/corporate healthcare costs for the 2 year gap between 65-67.

Ending Obamacare also would end the efforts to catch Medicare fraud which in 2 years has netted over $7B, more than all prior efforts combined over the prior decade.

All this before even getting to the voucherizing in 10 years.

Ending the 700B in cost reductions makes Medicare insolvent in 2016 vs. 2024 and the long term impact of those costs not being out of the system are in the hundreds of billions as the cost curve is not bent at all.

By: Jared Bernstein

Jared Bernstein — Thu, 16 Aug 2012 12:05:19 +0000

Well, Ryan does nothing to fundamental Mcare for 10 years except repeal ACA–which has significant impacts. But as I pointed out on the Rev’s show, you’re right re shifting the costs to beneficiaries by vouchers that fail to keep pace with health costs. On the other hand, they both cut the growth and I think it’s fair to call those “cuts.”

See the update I’m about to post…

By: davesnyd

davesnyd — Thu, 16 Aug 2012 11:48:41 +0000

Thanks; I was thinking yesterday that this had been underexplained in the media.

But unless I’ve misunderstood– isn’t the Ryan plan *worse* even than you’re describing?

The President’s $700M cuts come from bending the curve– reducing the rate of growth. But don’t Ryan’s come from transferring the cost of each senior’s Medicare from the government to the individual via vouchers that are designed to not keep up with the cost of the program?

So the President’s “cuts” aren’t– they are a slowing of growth. But Ryan’s “cuts” are real cuts: someone else has to pay for them.