Understanding Paul Ryan's Budget Plan
http://thedianerehmshow.org/shows/2012-08-15/understanding-paul-ryans-budget-plan
Republican presidential candidate Mitt Romney’s selection of Paul Ryan as his running mate has led to new interest in the Wisconsin congressman’s budget. In its latest form, the Ryan plan changes Medicare from a system of guaranteed payments for seniors to one that uses “premium support” credits. These vouchers may be used to purchase private insurance or to join traditional Medicare. The Ryan budget also cuts Medicaid, keeps the Bush tax cuts and streamlines the federal tax code. Critics say it will end Medicare as we know it. Supporters say reform is necessary to save the program from bankruptcy. Diane and guests discuss the Paul Ryan budget plan and what it means for the future of federal entitlement programs.
Guests
Jared Bernstein
senior fellow at the Center on Budget and Policy Priorities, and former chief economist and economic policy adviser for Vice President Joe Biden.
Mary Agnes Carey
senior correspondent for Kaiser Health News.
Grace-Marie Turner
president of the Galen Institute, a research group focusing on free-market health care reform and tax policy.
Damian Paletta
reporter for The Wall Street Journal.
Comments
Please familiarize yourself with our Code of Conduct and Terms of Use before posting your comments.
I am 51 years old. I think that putting these changes off for 10 years is irresponsible. If we are in so much trouble with the deficit, let's have all Americans make the sacrifices to balance the budget now. Talk about a way to united us all!
Mike Sergeant wrote: "Earlier you referred to Sweden as a model of success, "it works beautifully" I believe you stated, yet they have the highest taxes in the world. OldBrit posted useful information and so did you."
Don't conflate the entire social welfare system of Sweden with their health care system. If we were to adopt their method of cost control on the health care system, yes they have a lot to offer. If we were to raise deductibles to their level, the democrats would be screaming in the streets and would be calling the proponents of this idea murderers.
Information is only useful if it is complete, Oldbrit failed on all accounts.
No one speaks of the horrendous medical cost from Doctors and Hospitals. No one asks why a office visit cost 150 or more dollars for a ten minute followup (which the doctor orders).
Hospitals in this country are there to make money for the doctors and hospitals first. The rich wish to deny medical care to Blacks , Hispanics and lower income whites. I think we are headed for insurrection Blacks will not revisit a more modern version of slavery.
Like the other caller, we retired somewhat early. We bought our own insurance, paid ALOT with a high deductable and I still had to pay for all my well woman checkups. Will that be covered in this plan?
andyrobinking wrote: "I am 51 years old. I think that putting these changes off for 10 years is irresponsible. If we are in so much trouble with the deficit, let's have all Americans make the sacrifices to balance the budget now. Talk about a way to united us all!"
As a Ron Paul supporter I agree and don't trust politicians as far out as next week. This unfortunately is all that's palatable to the average misinformed and intentionally ignorant American voter, and were not sure this can get through! eesh
Dear Ms. Rehm, Thank you for hosting this discussion. Please correct, on the air, the comment made by your guest stating that the Medicare program is full of holes and that the reason that people purchase Medigap insurance is to cover those holes. This is not accurate. I have been handling my parents' affairs for several years. They are in their late 80s and have Medicare and AARP Medigap insurance. The "full of holes" problem is, just like any employer insurance plan, some things are not covered, i.e. certain vaccines, lab tests, etc. If Medicare does not cover those things, then they are not covered AT ALL by the Medigap insurance, and the patient is liable for 100 percent of the cost. Your guest was incorrect. The Medigap insurance does not cover medical care that is not covered by Medicare. Instead, Medigap insurance pays the remaining 20 percent not covered by Medicare, which negotiates a discount off original medical care fees, then covers 80 percent of that discounted fee. Thank you.
flashrodd wrote:
"The rich wish to deny medical care to Blacks , Hispanics and lower income whites. I think we are headed for insurrection Blacks will not revisit a more modern version of slavery."
Do you not get why no one will take you seriously when you post absurd provacative statements like that?
NOTE to those who say old folks (over 55) will not be impacted by budget changes:
a. Gov. Romney said he would repeal ACA on his first day. That takes with it the pre-existing conditions item. The voucher plan would provide only 6K toward premiums. The demographic group with the most pre-existing conditions is those over 55. Any high risk pool premiums (even IF you can get into one) exceeds 6K.
b. There are more Medicaid folks over 55 and children uner 18 than any other age group. This is also true for food stamps and other aid types.
c. As workers age past 55, opportunities for new employment shrink dramatically. Cuts would hit at the time in life when income alternatives decrease the most.
d. Older folks typically have even more family to worry about.......kids, grandkids, great grandkids, in-laws, aging parents et al. Caring for family members only increases, again at a time with fewer alternatives.
e. This will be the first generation of retirees who are most dependent on non traditional pension incomes.....IRAs, annuities, universal life investments, etc. Those investment type plans were hit hardest by the crash in 2007.
f. The crash in housing values hits hardest on those who now cannot turn their home investment into possible retirement nest eggs, just at the time when they need it the most.
By the way, there are commenters who ASSUME others are of a certain age or ethnicity or background. We all know what happens to those who ass...ume. There are also commenters who resort to many, many posts and ad hominem attacks.....as a substitute for informed dialogue.
Ferdnam,
POP Quiz! What is the single thing the US Congress could do to solve 71% of the budget problem? Is it A. cut foreign aid by half, B. cut Congressional pork spending by half, C. cut social security and medicare, or D. let the Bush tax cuts expire?
From the tone of your post, I'm guessing you know the correct answer (D.), but most Americans WANT to believe it's the other 3, depending on their age/situation, which would solve 1%, 1%, and 8-9% respectively. (Source: nonpartisan Committee for a Responsible Federal Budget)
What's unfolding in this country is the consequence of a hybrid system that's created losers (private sector workers who must live off the economy) and winners (govt and military workers and retirees who are funded by the losers). Add in private sector incomes not keeping up for at least 10 yrs, the huge increase in energy costs, and a stunning amount of ignorance of facts among most Americans and here we are.
Obama got in because so many people WANTED to believe this "new guy" had a magic wand and would solve everything and take away their pain in approx 10 minutes. That didn't happen and wouldn't have happened no matter who was elected in 2008, there's even more pain out there now, and probably still a lot of BELIEF that this new "new guy" has a magic wand... etc etc.
Question: How many people know that Paul Ryan came to Washington at 19 and has ONLY ever worked FOR or IN Congress? He comes from extreme multi-generational wealth, his Healthcare lobbyist wife inherited approx $5 million herself, he knows absolutely nothing about the real economy and people who must live on it, and YET, he knows just EXACTLY how to 'save the country?' His plan is fantasy, completely disconnected from reality, and, when you step back and THINK about it, mostly based on hope and BELIEF.
JaneFact wrote: "he knows absolutely nothing about the real economy and people who must live on it, and YET, he knows just EXACTLY how to 'save the country?' His plan is fantasy, completely disconnected from reality, and, when you step back and THINK about it, mostly based on hope and BELIEF."
This dear lady is Obama. Government spends to much and your solution is to tax the middle class to pay for it, there are better ways, sustainable ways. CUT SPENDING!
Bush tax cuts: $544.3 billion…The bulk of that cost — $463 billion — is for the extension of cuts for families making less than $250,000, including two years of relief for 2010 and 2011 for the middle class from the Alternative Minimum Tax.
The rest — $81.5 billion — is attributable to the extension of cuts that apply to the highest income families.
In other words, 85% of the tax cuts went to the middle class.
I only caught a part of this discussion, but I would like to know what data Ms. Turner was citing to declare the Florida Medicaid five county managed care pilot a success? The states did not find better quality or savings. That did not stop the legislature from turning the program over to managed care. Ideology over sound data.
andyrobinking wrote: "I am 51 years old. I think that putting these changes off for 10 years is irresponsible. If we are in so much trouble with the deficit, let's have all Americans make the sacrifices to balance the budget now. Talk about a way to united us all!"
I know where you're coming from. I will turn 55 just before the election. So even if R/R get in, I'm good to go, I'll be in the over 55 group by then, right? Nah. The Ryan plan that passed the House April 2011 SPECIFIED 'for those turning 65 in 2022,' in other words, my year-- what timing! And I notice he's still talking about 2022 in his newer versions. I pray every day that I'll have the strength or whatever to deal if this comes about...
JaneFact wrote: " I pray every day that I'll have the strength or whatever to deal if this comes about..."
You better pray you have the strength, if Obamacare is in place you will have to deal with government rationing and death panels deciding your fate. If you have enough money though you will be able to access the upper tier health plans of the two tier system that will be in place, the system that won't make you wait six months or more for treatment in over crowded waiting rooms, with doctors not of your choice performing a poor paying job they hate. One tier for the average American and the other tier for the evil 1%.
Partisan Politics wrote: This dear lady is Obama. Government spends to much and your solution is to tax the middle class to pay for it, there are better ways, sustainable ways. CUT SPENDING!
Don't put words in my mouth. Letting the Bush tax cuts expire does not make 'the middle class pay for it' because the middle class, in other words, average working people, have ALREADY paid for Soc Sec and Medicare. We just want our OWN money back (in our case, $481,000+ and we're still working and paying in).
The REAL question people should be asking themselves is this: How many dollars-- not percentages, you can't eat percentages-- have the Bush taxcuts put in their pockets and going forward, how many DOLLARS will the EXPIRATION of them cost them in additional taxes, compared to how many dollars losing Medicare/Soc Sec will COST them? Especially when they take into consideration how many DOLLARS they've ALREADY paid in.
I urge everyone to go to the soc sec website and print out their current soc sec statement. The total amount you and your employers have paid in for you is on the 3rd page approx halfway down. The answer may surprise you!
partisan politics wrote:
equalizer wrote: "How does providing a Medicare voucher address out of control healthcare costs?"
As written earlier it puts a burden on the patient to make sure the funds are used carefully and responsibly. Sweden for example uses very high up front costs (high deductibles) on the patient before the insurance kicks in, and it works beautifully. Do you read any of the other posts before you comment?
PP, so people in Sweden are “responsible” with how they choose to pay for their healthcare? Perhaps we could ask them to explain the responsible decision to make when faced with a choice between a hip replacement and necessary prescription drugs? Obviously a voucher will only pay for so much.
ecgberht wrote:
Economics 101 (and human history) dictates that free markets lower costs and improve quality (in this case outcomes).
Ecgbehrt, free markets only exist in the realm of academia. Economics 101 simply states that price is set when supply intersects demand. The voucher system would increase participation in the market and therefore create a positive shift in demand. Without a corresponding increase in supply, prices would rise.
Partisan Politics: Full disclosure: I just finished working on the re-compete bid for the incumbent who handles 1-800-Medicare for the govt, so I know a thing or 2 about this.
Everything you say is straight outa Fox-y, the mouthpiece for the Republican party, AKA Insurance and Big Pharma lobbyists.
PS: Partisan Politics, you say 'CUT SPENDING,' please specify what you think should/could be cut. Think there's still a website where you can try your hand at balancing the budget, etc. You owe it to yourself to look into this, look at the numbers, then report back SPECIFICALLY where cuts should be made.
ecgberht wrote:
Do you not get why no one will take you seriously when you post absurd provacative statements like that?
Here, Here!
ecgberht wrote:
"You really have very, very little control over the cost of your care."
Thats because healthcare IS a market good, just like any other good (contrary to your statement), but it has NEVER BEEN market based.
Economics 101 (and human history) dictates that free markets lower costs and improve quality (in this case outcomes).
August 15, 2012 - 10:59 am
Oh, Eggie, you poor, poor guy. No shortage of statistics showing that our health care system costs more and has worse outcomes than any other First World Nation.
As to your asinine,"...free markets lower costs and improve quality (in this case outcomes)".
How about Banking, among countless other examples??
When Banks were regulated, I had Free Checking, Free Checks, $2.00 Cashier's Check, $4.00 overdraft fee, Toll-free calling to my Branch Bank, no Minimum Balance, etc.
Today I'm being Nickel and Dimed (Twentyed and Fiftyed) to Death in order to create enough profits to allow the Bank to buy out more of its competitors and then raise prices and cut services even more.
Eggie, as your disease progresses, you are going to need to think more before you write, if you expect to be taken seriously.
Most of your comments make no sense and rely mostly on Straw Men arguments.
Your Pal,
Monte Haun mchaun@hotmail.com
Great show. As always, emphasis on facts and both sides represented.
Grace-Marie Turner sounds like a snake-oil salesman. The free market works when the participants are honest and concerned about not just themselves but the whole. Free-market health insurance companies have ruined our health care system with their greed. Now, Paul Ryan wants us to believe that Medicare Vouchers will cover the cost of medical insurance and all will be good. The only future individuals benefiting from the Ryan plan will be the top paid employees and wealthy shareholders.
JaneFact wrote"Don't put words in my mouth. Letting the Bush tax cuts expire does not make 'the middle class pay for it' because the middle class, in other words, average working people, have ALREADY paid for Soc Sec and Medicare. We just want our OWN money back (in our case, $481,000+ and we're still working and paying in)"
Bush tax cuts were middle class tax cuts. Don't confuse federal tax payers with federal tax takers! reread that response.
I gave you the numbers above. But if your talking about the bottom 50% that pay no federal taxes at all that's another story. As far as people wanting back what they put in, this is also false. People on average can expect to get three times back of what they have put into medicare. Social security is now also in the red mostly because Obama champion of the downtrodden has reduced payroll taxes.
Better do your homework your wildly misinformed. Here's a link about SS and medicare read it and weep.
http://www.nytimes.com/interactive/2012/02/12/us/relying-on-government-b...
"ecgberht wrote:
Still, in many countries a "war tax" might make a lot of sense. There are some problems with the idea here though and most of them lie with Congress. The biggest is, historically "tax increases and spending cuts" combining to reduce deficits haven't worked because the tax increases go into effect, but the spending cuts never happen - for either paty."
How do you think Clinton balanced the Budget??
"The second problem is the misappropriation of funds. SS is the classic example. Billions of SS withholding out of workers' paychecks have been replaced with debt instruments and the money has been spent. SS is about to turn upside down (you can look at the Trustees report on the "trust fund" to see it). When that happens, the FG must start redeeming those debt instruments into cash to make payments. So the question arises, would the "war tax" be spent on the wars? Based on history, probably not.
August 15, 2012 - 12:23 pm "
Wow!!!! Straw Men upon Straw Men upon Straw Men!!!
In a nut shell, SS Bonds will be redeemed just like any other Government obligation.
Anyhow, Johnson passed a "War Tax" which was used to fight the Viet Nam War, Nixon did not, instead passed a SS Increase which he stole to lead us to Victory over Nam.
Monte Haun mchaun@hotmail.com
JaneFact wrote: "PS: Partisan Politics, you say 'CUT SPENDING,' please specify what you think should/could be cut. Think there's still a website where you can try your hand at balancing the budget, etc. You owe it to yourself to look into this, look at the numbers, then report back SPECIFICALLY where cuts should be made."
Don't need too, I am on board with Ron Paul on this, know his policies and then you will know what I want cut, just about everything! I don't know where most of you get your thinking but if your able bodied I just don't see the need for all this nanny state pampering that you seem unable to live without.
What idiocy! Healthism and Medicalism are fascist cults. If the government attempts to promise populist imbeciles the same immortality that the modern medical industrial complex markets now, the result will be rapid national insolvency. Hi tech money driven medicine has been a ridiculous racket all along. I say license every adult American to practice medicine on themselves, purchase their own lab tests, write their own prescriptions, and use the internet to figure out their own care. Medical specialists should have the role of consultants, not “gatekeepers”.
This could not be worse than what the professionals profess to be offering now, and prices would quickly come down with busting of those monopolies. End the “war on drugs while you are at it.” You corrupt political sobs. Wake up America! Pull your heads out of the darkness where the sun does not shine.
If I were teaching at the high school level, the first day of class I would say,
“There is a shortage of ninety thousand medical doctors in this country. Today we are going to do something about that.”
Then I would tell all the students to take out a blank sheet of paper. I would put an examples of diplomas “Doctor of Medicine” and “License to Practice Medicine”. I would tell all my students to design their own certificates; and turn them in at the end of class.
Overnight I would photocopy them, and return them the next day. There would be an assignment to laminate and frame them. Then I would mount them on the walls, all over the classroom, for the rest of the semester.
During the semester I would have students doing term reports on various syndromes; and field trips to interview older citizens who suffered from those syndromes. Term reports would include hand drawn illustrations of how the syndromes were influencing body organ systems.
I bet cha the kids would be plenty up for it. They would find math and science a whole lot more interesting too. They would also be plenty welcome to all us old baby boomers. At least as helpful as our existing health care system
Honest?Abe,
Frankly, I don't know if you are actually DIShonest or if you are simply woefully ignorant.
"Gov. Romney said he would repeal ACA on his first day. That takes with it the pre-existing conditions item. The voucher plan would provide only 6K toward premiums. The demographic group with the most pre-existing conditions is those over 55. Any high risk pool premiums (even IF you can get into one) exceeds 6K."
Pre-existing conditions are covered under Medicare the day you turn 65. Pre-existing conditions are covered as long as you are covered under Medicaid.
If you are over 55, under the Ryan Plan, your Medicare coverage will not be affected one iota.
Recommended reading is ... the actual Ryan Budget:
http://budget.house.gov/uploadedfiles/pathtoprosperity2013.pdf
The rest of your post is non sequitur.
"By the way, there are commenters who ASSUME others are of a certain age or ethnicity or background. We all know what happens to those who ass...ume. There are also commenters who resort to many, many posts and ad hominem attacks.....as a substitute for informed dialogue."
Nobody is making any assumptions about age. Oh ... and pointing out someone's ignorance, when they are truly ignorant about a subject matter is not an "ad hominem attack". "You're a doody head" is an ad hominem attack. "You are ignorant about Medicare, Medicaid, and the Ryan plan" is not.
JaneFact wrote:
"He comes from extreme multi-generational wealth"
You blow your credibility with that statement, Jane.
From wiki:
"His father died of a heart attack in bed where Ryan found him at the age of 16. According to Ryan, his father, grandfather and great-grandfather all died from heart attacks at ages 55, 57, and 59 respectively, inspiring his later interest in health and exercise.[18] After his father's death, Ryan's grandmother, who suffered from Alzheimer's disease, moved in with his family and he helped care for her.[8] His father’s death provided Ryan with Social Security benefits until his 18th birthday, which he saved to pay for his education at Miami University of Ohio."
He also flipped burgers at MickeyDs.
Unless you consider getting by on SS benefits and working the grill "multi-generational wealth", your statement is false.
Honest?Abe sounds a lot like the same guy who didn't know what ad hominem attacks were, didn't know the Constitution is based on natural or god given rights as stated in The Declaration of Independence and thought Obama's bailout out of GM was a perfect example of Obama's support of the free market. = Libvet!
McChaun wrote:
"Wow!!!! Straw Men upon Straw Men upon Straw Men!!!"
Still waiting for you to name ONE instance from all my posts. One specific instance. Hint: I did not refute any positions of Ferdnam.
You like to use the term "straw man", but you still don't know what it means, McChaun.
"In a nut shell, SS Bonds will be redeemed just like any other Government obligation."
With what, McChaun?