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Buying the Medicare benefit package from a private insurer would turn out to be significantly more expensive. Medicare typically pays hospitals and doctors less than private insurance. Without some kind of effort to control private health care costs, the government contribution toward premiums wouldn't go very far. "I don't believe you can pursue this approach for Medicare and not at the same time address the problem of cost growth in the private health care sector," said economist Robert Reischauer, a former budget office director. "To do so would result in a two-tier health care system." Reischauer says he's sympathetic to the voucher system in principle, just not this version. Ryan had developed an earlier form of his proposal jointly with a prominent Democratic economist, Alice Rivlin, a former vice chair of the Federal Reserve. Although Ryan publicly cited her in unveiling his plan, Rivlin said she doesn't support this version. The government health care payment in the GOP budget would quickly fall behind medical inflation, Rivlin said. "Ryan has lowered the growth rate so that it's really punitive," she added. Rivlin also says seniors should be given a choice between staying in traditional Medicare and a voucher system. She also differs with Ryan on raising taxes. "You can't do it all on the spending side, because the cuts required are Draconian," Rivlin said. Despite the political risks Republicans take with their Medicare remake, they won't get much in savings over the 10-year estimating window that Congress applies to the budget. It's because the shift to a new system doesn't come until 2022. That's not the case with Medicaid. The health care program for the poor would be turned over to the states and spending cut by more than $700 billion over time.
Although the GOP's 2012 budget reduces total government spending by more than $5 trillion over a decade, that still wouldn't bring the federal budget into balance. One of Obama's top advisers, David Plouffe, says the president this week will offer his own plan for reducing long-term spending. The details will come from Obama, Plouffe says, although the adviser acknowledges that cuts to Medicare and Medicaid will be necessary. ___ Online: House GOP budget: Congressional Budget Office:
http://budget.house.gov/fy2012budget/
http://www.cbo.gov/doc.cfm?index12128
[Associated
Press;
Ricardo Alonso-Zaldivar covers health care for The Associated
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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