Here comes the debate over Medicare. And guess what, it’s not about privatizing the program. Medicare is already privatized. You can take the government payment toward your coverage and purchase from any number of private plans; Medicare Advantage!
What we are talking about is changing government funding from a defined benefit approach to a defined contribution approach. The rhetoric about choice and competition and more for less is nothing but fog designed to obscure the fact that the premium support effort, to save money, means that the level of government support must increase less than actual health care costs for the Medicare population. In other words, more costs must be shifted to individuals which some experts believe will lower overall health care spending. A theory which relies on the assumption that you can apply free markets and consumerism to health care just as you can to other purchases. 🤡
In the debate over whether to privatize the provision of public insurance, advocates point to two arguments suggesting that privatization does more good than harm – premium support would result in more options for the consumer and increase competition among private suppliers, with both outcomes ultimately benefiting the consumer’s bottom line. Ryan’s plan aims to empower patients and is dynamically calculated.
His June 22, 2016 Health Care Policy Paper, found directly on Speaker Paul Ryan’s A Better Way public-facing site, states: “The Medicare premium support payment would be adjusted so that the sick would receive higher payments if their conditions worsened; lower-income seniors would receive additional assistance to help cover out-of-pocket costs; and wealthier seniors would assume responsibility for a greater share of their premiums.”