Medicare

There are some questions floating around about Medicare and this mysterious $716 billion.  Mitt Romney has claimed that President Obama took that money from Medicare.  Romney has vowed to put it back in Medicare.

The $716 billion came from cuts made to reimbursements to hospitals and insurance companies.  Those same cuts are in Paul Ryans FY 2013 budget that actually ends Medicare.  The result of putting back the $716 billion in payments to hospitals and insurance companies would make Medicare insolvent eight years sooner, and increases premiums for all beneficiaries.  It would also result in Medicare paying higher payments to hospitals and insurers.

The CBO reviewed Mitt Romney’s tax plan and found that if Medicare is subject to cuts it would result in total cuts of (in billions of dollars):

  • $95 in 2016
  • $230 in 2022
  • $1,034 spread across 2014-2022

They also found that if Medicare is not subject to cuts there would be cost increases of (in billions of dollars):

  • $52 in 2016
  • $130 in 2022
  • $713 spread out over 2014-2022

The protection of Medicare would come at the expense of Medicaid.  In total by the year 2022 Medicaid would be cut 61%.

At the same time, Mitt Romney’s plan calls for cuts in Health Insurance Subsidies and related spending of (in billions of dollars):

  • $93 in 2016
  • $152 in 2022
  • $984 spread out over 2014-2022

Paul Ryan and Mitt Romney also claim that their plan will have no impact on current seniors.  The Center for American Progress Action Fund put some math to the analysis done by the CBO on the Romney-Ryan budget.  It was found that current seniors, conservatively, could expect a cost increase of $11,000 and an additional $2,500 for those who also rely on Medicaid.  Future seniors would have to save more than $331,200 to cover their additional costs for medical coverage.

The Center for American Progress put together this infographic:

MedicarePeople_Infographic_web_graphic1
Links:


Romney Budget Proposals Would Necessitate Very Large Cuts in Medicaid, Education, health Research and Other Programs Table 1 (http://www.cbpp.org/cms/?fa=view&id=3658)

Romney Budget Proposals Would Necessitate Very Large Cuts in Medicaid, Education, health Research and Other Programs Table 2 (http://www.cbpp.org/cms/?fa=view&id=3658)

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