Paul Ryan Falsely Claims Republican Budget Would “Not Change Benefits for Anybody 55 and Above”

On Fox News Sunday today, Republican Budget Chairman Paul Ryan falsely claimed the Republican budget would “not change benefits for anybody 55 and above."

In reality, the Republican budget would reopen the prescription drug donut hole, costing the four million seniors who fall into the coverage gap $2.2 billion this year alone. Ryan’s budget would also cut funding for the nearly 1 million long-term care patients currently relying on Medicaid. The National Journal wrote “Republicans say their Medicare plan wouldn’t affect anybody near retirement age. But it would.”

FACT CHECK
Republican Plan Would Affect Current Seniors. “Republicans say their Medicare plan wouldn’t affect anybody near retirement age. But it would. Republicans are convinced that burnishing the public’s view of their unpopular proposal to overhaul Medicare depends on assuring today’s seniors that they won’t be affected […] There’s only one problem with the strategy: It’s not true. The policies in the House GOP budget, if enacted, would begin affecting millions of seniors almost immediately by increasing their costs for prescription drugs and probably long-term care. Further, Medicare costs could rise over time if healthier seniors choose to abandon the traditional benefit program.” [National Journal, 6/2/11]

FactCheck.Org: Ryan Plan Would Reinstate “Doughnut Hole.” According to FactCheck.org, in May 2011, “Ryan’s budget plan does indeed reinstate the so-called ‘doughnut hole,’ a gap in Medicare Part D prescription drug coverage. As the nonpartisan Congressional Budget Office said: ‘The proposal would repeal the provisions that created the Independent Payment Advisory Board and that expanded subsidies for the “coverage gap” in Part D (a range of spending in which many enrollees have to pay all of their drug costs, sometimes called the doughnut hole).’” [Factcheck.org, 5/6/11]

The Republican Budget Will Force Nearly Four Million Seniors To Pay An Additional $2.2 Billion For Prescription Drugs in 2012 Alone. “The Republican-passed budget will force nearly four million seniors to pay an additional $2.2 BILLION for prescription drugs next year alone.” According to the Associated Press, “The coverage gap in the Medicare prescription drug benefit would be brought back.” [DPCC, 4/21/11; Associated Plan, 4/6/11]

AARP: Budget Undermines Vital Programs for Older Americans. “Among its provisions, the proposal would drive up costs for people in Medicare, take away needed coverage for long-term care from millions of older and disabled Americans and reduce critical help for seniors facing the threat of hunger.”  [AARP, 4/7/11]

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The intent of the Ryan plan and the Republicans are to terminate Medicare all together. This is a way to start the process.

They have convinced the younger generations that Medicare will not be around when they retire because the country can't afford it. So they claim that by providing premium assistance to the younger generation when the reach retirement, they will be able to go out to the open health insurance market and purchase insurance that meets their need.

There is a huge flaw in that argument. The health insurance industry does not want to insure seniors. Why? Because it costs too much in claims and they premium would be so high that no one could afford it. Most humans consume most of their health care costs after they reach about 60 years old. They have more chronic ailments that require frequent doctor visits, high cost prescriptions to manage these ailments and more hospitalization.

That is why President Johnson created Medicare, since no insurance company wanted to insure them. Once they were no longer on the companies health plan, they were left without coverage at the time they most needed it. Many seniors went without health care which allowed ailments to progress to the point of death.

One of the reason longevity has increased since the 1960s is because of Medicare and having access to health care when you are no longer working and have company sponsored insurance, living on a small fixed income, sometimes only Social Security. To remove this program would reduce that longevity. Well, maybe that is their plan?

Since the Republicans are focused on running the country like a corporation, a corporation must reduce unproductive costs to maintain a profit, so these unproductive seniors should leave this planet and not reduce the productivity value, thus profitability, of those who are still producing for the corporations.

Yes, there needs to be reforms to bring costs under control, but the only way to do that is through a better structured organizational and compensation model. Combined with slightly higher tax on income to pay the premium of the program while you are in your working years.

So think carefully when the Republicans are saying they want to SAVE MEDICARE! That has not been their goal since it was passed 50 years ago. The same holds true about Social Security.