Obama is taking $716 billion out of Medicare funding to finance Obamacare. Obamacare is essentially a transfer of wealth from the middle/middle, upper/middle classes and the poor to the lower middle class. But, depending on how much insurance costs increase due to mandates, even the lower middle classes might lose. Certainly, some will because 17 million of them will be crowded into Medicaid.
The chief actuary for Medicare says that by 2022 under Obamacare, Medicare reimursement will be lower than Medicaid reimbursement. If that happens, it will make Medicare a worthless program for seniors because providers already are resistant to accepting Medicaid because it’s often less than their costs.
Obamacare also gets rid of Medicare Advantage entirely. About 1/3 of seniors have Medicare Advantage. It was scheduled by Obamacare to go out of existence before the election, but Obama put it off until after the election because he didn’t want seniors to get the bad news before the election. That’s just a fact, and nobody argues otherwise.
Ryan’s plan, (which is not necessarily Romney’s plan, which one needs to remember) keeps Medicare the same as it is now for those who are on it and for those who will be on it by 2023. No change. It will, however, change it to a reimbursement system with more reimbursement to those with lower incomes, less for those with high incomes. Those presently under age 55 will have the choice whether to spend their reimbursement for classic medicare or for insurance of their choosing. There is nothing in Ryan’s plan to reduce the reimbursement to medical providers.
Ryan worked out his plan together with a very liberal Democrat, Ron Wyden. So it’s really the “Ryan/Wyden plan”, not just the “Ryan plan”. Their objective was to save Medicare from its oncoming demise in about 2026, but to reduce the cost and extending its life by requiring more contribution from the wealthy to their own health plans and by giving younger people some choices.
But again, there is no certainty that Romney will have quite the same plan. My limited understanding of Romney’s plan is that it would be similar to the Ryan/Wyden plan, but have more funding to it and would therefore be more costly to the nation.