Friday, August 31, 2012
Ryan And Obama Propose The Same Amount On Medicare
Paul Ryan and Obama propose to spend equal amounts on Medicare. Obama's plan keeps spending growth down by $761 million in payment reductions to healthcare providers. Ryan's plan relies upon competition between insurance companies to reduce costs. If that doesn't work, the cost of healthcare inflation will be shifted from government to seniors. Of course, competition between insurance companies has done little to reduce price inflation in the private market. Its hard to see how that would change. Furthermore, Medicare has been more effective at controlling price inflation and administration costs than insurance companies.