There are two points that say privatization of public insurance is good in that it offers consumers more options and increases competition in the insurance industry. Proponents for privatization say both those changes would be financially beneficial for consumers in the long run.
House Speaker Paul Ryan whose alternative proposal, A Better Way, is being touted as a possible solution to revamping the health care system, says “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.”
One of the main reasons for the drive to make changes to Medicare is the continued aging of the population and the ratio of those employed to those retired declines. Disparities such as this contribute to an economic conundrum that the new administration hopes to bring under control.
While the way may not yet be clear, Paul Ryan’s “A Better Way” may offer some viable solutions.
The new administration plans to push health care reform, and in the process overhaul Medicare, by eventually implementing what they refer to as premium support. What does that mean for Americans? It means that premium support would increase competition among health care providers, thus offering beneficiaries the choice of where to spend their money when choosing providers.
House Speaker Paul Ryan formulated one of the proposed plans that may replace Medicare. Should the Better Way plan come into being, it would move Medicare away from the current single-payer status. Right now the government pays for seniors’ health care into a system that inhibits health care costs by creating more competition from suppliers wanting the business.
Does this mean Medicare stands the chance of being eliminated? That remains to be seen. There are too many factors for any type of a clear answer to surface. The bottom line with Medicare as to whether it is phased out or replaced with a premium support plan rests on budgetary concerns.
Posted on Wednesday, January 25th, 2017. Filed under
Medicare.
There is a good possibility that the new form of health care for the nation may provide health support based on age. As explained by House Speaker Paul Ryan, the idea would be that older Americans who are very ill would get more support, as would lower income individuals. Those with higher incomes would thus not receive the same kind of support since they could afford to pay for it.
The new administration has plans to make significant changes to Medicare. Many incoming politicians feel Medicare is responsible for a huge hole in the budget due to the misuse and abuse of the program. Having said that, Speaker Ryan also pointed out that the longer Medicare runs without any changes or pending changes in place, the delay just makes things worse.
Americans who use Medicare are advised to be aware of any potential changes that may affect them. It is hard to predict what changes may be proposed and how they would benefit Medicare recipients, and whether or not those suggested revisions may come to pass.
With a new administration promising to repeal the Affordable Care Act (ACA), 2017 may be a different year. However, with all large changes that may be coming, it is virtually guaranteed that repealing the ACA and replacing it with something else requires, in the words of House Speaker Paul Ryan, “a good transition period.” No matter how much Americans want change that change will need to accommodate the over 20 million people who did buy health insurance under the ACA.
A replacement plan has to be put into place before the ACA could be repealed. While there is a replacement plan on the table, it is not clear if that plan will be sufficient for American families and seniors to keep affordable health insurance that suits their needs. In the meantime, things remain unaffected, pending changes.
One portion of the ACA, referring to coverage for individuals with pre-existing conditions and young adults staying on their parents insurance until they turn 26 may be kept and/or tweaked as new plans are formulated.
Speaker Ryan was not clear on how long a transition period would last, but some reports indicate that it might take up to three years to accomplish the kind of massive shift in health care.
