Obama's New Higher Priced, Lower Service, Medicare Plan

[Vel]

The details are starting to get out about how seniors will be paying for Obama gutting 716 million from Medicare so that he can make ObamaTax look less expensive. And as always with Obama, it's got it's class warfare built in.
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Obama Medicare Plan: No Voucher But Maybe A Bill
By RICARDO ALONSO-ZALDIVAR 09/23/12 08:22 AM ET EDT

WASHINGTON — He'll never turn Medicare into a voucher, but if you are lucky enough to be financially comfortable in retirement, odds are you'll pay higher premiums under President Barack Obama's plan. It's not just the 1 percent who'll feel the pinch.

And take note, baby boomers: The Medicare you get won't be quite as generous as what your parents' generation enjoys. A higher deductible here, a new co-payment there, and the tweaks add up.

ome Medicare questions for consumers to watch, along with answers from the Obama campaign and the views of several experts:

Q: What new costs can seniors expect under Obama's plan for Medicare?
A: You may need a CPA degree to understand the complicated details of changes proposed by the president.

Broadly speaking, Obama would raise monthly premiums for retirees making $85,000 or more ($170,000 for married couples). He also would hit newly joining baby boomers with a series of fees.

Currently only about 5 percent of beneficiaries pay higher, income-based monthly premiums for outpatient coverage under Medicare Part B and even fewer pay higher premiums for prescription drug coverage.
Under Obama's proposal, a growing share of seniors would pay the higher premiums over time. He'd also bump up the premiums paid by higher-income beneficiaries by 15 percent.

Obama Medicare Plan: No Voucher But Maybe A Bill

 

[Claudette]

Well of course Obamacare is gonna be more expensive to those who have coverage.

How else are those without gonna become those with??

Money don't grow on trees folks. Those with are gonna pay higher premiums. That includes everyone. Even those on Medicare.

 

[nodoginnafight]

Both sides are proposing similar things here. And it makes sense. The old formula assumed a life expectancy of 72 so benefits were planned to be paid out (on average for 7 years.) we're now at about 78. So the provisions made to last everyone 7 years, now have to stretch to about 13.

I don't think anyone truly believes that some adjustments are not called for. The difference between the two candidates on this (well, Ryan anyway - not sure exactly where Romney stands) are not very big at all.
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Ryan got booes (but also some surprising cheers) when he confronted AARP members with some of the harsh realities.

 

[Vel]

Both sides are proposing similar things here. And it makes sense. The old formula assumed a life expectancy of 72 so benefits were planned to be paid out (on average for 7 years.) we're now at about 78. So the provision made to last everyone 7 years, now have to stretch to about 13.

I don't think anyone truly believes that some adjustments are not called for. The difference between the two candidates on this (well, Ryan anyway - not sure exactly where Romney stands) are not very big at all.

Key Elements of Mitt’s Plan

Nothing changes for current seniors or those nearing retirement

Medicare is reformed as a premium support system, meaning that existing spending is repackaged as a fixed-amount benefit to each senior that he or she can use to purchase an insurance plan

All insurance plans must offer coverage at least comparable to what Medicare provides today

If seniors choose more expensive plans, they will have to pay the difference between the support amount and the premium price; if they choose less expensive plans, they can use any leftover support to pay other medical expenses like co-pays and deductibles

“Traditional” fee-for-service Medicare will be offered by the government as an insurance plan, meaning that seniors can purchase that form of coverage if they prefer it; however, if it costs the government more to provide that service than it costs private plans to offer their versions, then the premiums charged by the government will have to be higher and seniors will have to pay the difference to enroll in the traditional Medicare option

Lower income seniors will receive more generous support to ensure that they can afford coverage; wealthier seniors will receive less support
Competition among plans to provide high quality service while charging low premiums will hold costs down while also improving the quality of coverage enjoyed by seniors
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I'm really not seeing the similarities. I see that Mitt's plan adds competition to drive down prices, while Obama's plan just makes sure that everyone's going to pay more.

 

[nodoginnafight]

"...however, if it costs the government more to provide that service than it costs private plans to offer their versions, then the premiums charged by the government will have to be higher and seniors will have to pay the difference to enroll in the traditional Medicare option

Lower income seniors will receive more generous support to ensure that they can afford coverage; wealthier seniors will receive less support..."

Like I said ...