In the future, the GOP budget would have seniors choose between traditional Medicare and private plans, and they'd get vouchers to help pay for their coverage. Democrats and advocates for seniors argue this would ultimately hurt Medicare, and cost seniors more out of pocket.
Jon Oberlander, a professor of health policy at the University of North Carolina, Chapel Hill, says based on estimates from the nonpartisan Congressional Budget Office, the reductions in government spending on Medicare would be significant.
"Compared to current law, including the changes in the Affordable Care Act, by 2050 the Republican budget would actually lower per-person spending in Medicare by about 35 percent, above and beyond what we already have in current law."
Romney's Support For Ryan Budget Has Democrats Crying Foul
Starting in 2022, Medicare beneficiaries would receive a voucher to pay for private insurance. In the first year of the plan, a beneficiary would pay 61 cents for services that he would have paid 27 cents for under traditional Medicare, while the government contribution is unchanged: 39 cents. Why are they, in combination, paying more for the same services? Because private plans cost more than traditional Medicare. Thereafter, the value of the voucher grows more slowly than health care costs so by 2030 the government is paying just 32 cents while the beneficiary is paying 68 cents for that same set of services.
The federal government, instead of matching the states in paying for Medicaid, would, starting in 2013, switch to block grants that grow in line with population and overall (not health care) inflation. Federal Medicaid spending would be 32% lower in 2022 and 49% lower in 2030 than currently projected. The CBO says:
The CBO scores Paul Ryan
Paying more for less...it's the Republican way...