Wednesday, August 22, 2012
Romney's Medicare Reform Eliminates Cost Savings And Gives Them To Insurers And Providers
Mitt Romney claims that Obamacare takes $716 billion away from Medicare and gives it to the "wrong kind of people" on Medicaid. The $716 billion consists of costs savings that are in Obamacare. The costs savings come from eliminating subsidies to private insurers who provide Medicare Advantage coverage, and from lower payments to healthcare providers. By repealing Obamacare and eliminating the costs savings, Romney is not protecting benefits for senior senior citizens. His plan provides additional funds for insurers and healthcare providers. The Medicare trust fund will run out money much earlier than it would under Obamacare and senior citizens will see rising copayments and rising premiums in return. This is another example of the GOP's preference for redistributing wealth upwards instead of downward.