By: Jon Walker
There are two very simple, straight forward things you can do with Medicare if you want to make a big reduction in the deficit: you can either destroy Medicare, or vastly expand it.
Rep. Paul Ryan (R-WI) has stepped forward for the Republican Party to endorse the “destroy Medicare” solution as the best way to reduce the deficit. After all, treating the medical needs of the elderly is very expensive. If we just let old people die when they can’t afford to pay the doctors anymore, we eliminate one of the government’s biggest expenses.
This is the unspoken principle behind Ryan’s plan to reduce the deficit, though it executes it in a slow and subtle way. The GOP’s “Path to Prosperity” would privatize Medicare and give older Americans vouchers to buy private insurance, but these vouchers wouldn’t increase in value at the same rate as the cost of insurance. If the voucher isn’t big enough to cover the cost of care, American seniors are out of luck or out of pocket, and the government saves the money it would have “wasted” on having Medicare pay to treat them.
Progressives have a real plan to reduce the deficit: expand Medicare
Alternately, since Medicare is dramatically more cost effective than private health insurance, government could significantly reduce the deficit by expanding this proven program. Just allowing people in the new health care reform exchanges to buy into a Medicare-run insurance plan would save over a $100 billion. In addition, given that health insurance is such a big expense for businesses, allowing the private sector to buy Medicare instead of private insurance would result in higher wages, more employees hired, and/or larger profits. All of which would generate substantial tax revenue for the government.
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Link:
http://fdlaction.firedoglake.com/2011/04/05/to-reduce-deficit-government-can-destroy-medicare-or-expand-it/I'm sure Obama will be before the public any day now to inform the public of this simple truth about Medicare. Any day now...I'm sure of it.