The Path to Prosperity (H.Con.Res. 112) and Medicare- FAQ

On March 29, 2012, the House passed H.Con.Res. 112.  Introduced by Rep. Paul Ryan (R-WI), it would set the federal government’s budget policies for fiscal year 2013 and project spending, revenues, and deficits over a ten-year budget window between fiscal years 2013 and 2022. The budget sets the total limits of spending, revenue and debt for specific years and outlines programmatic assumptions to achieve those levels. 

This budget saves Medicare for current and future generations, with no disruptions for those in and near retirement. For younger workers, when they become eligible, Medicare will provide a premium-support payment and a list of guaranteed coverage options – including a traditional fee-for-service option – from which recipients can choose a plan that best suits their needs. Below is an FAQ related to how this budget impacts Medicare:

I have heard that this plan ends Medicare, is that true?

No, this budget saves Medicare. It’s important to understand that without reforms, according to the non-partisan Medicare trustees, Medicare will go bankrupt in just twelve years. This budget plan contains bipartisan solutions to preserve Medicare by offering guaranteed coverage options to future seniors, regardless of pre-existing conditions or health history.

I am currently a Medicare beneficiary or will be one within the next ten years.  Will my benefits change?

No. The budget plan includes no changes for those 55 and older. This budget protects and preserves this critical program for those in or near retirement.

I am younger than 55, will Medicare be improved for my retirement?

Yes. The budget protects and strengthens Medicare for those 54 and younger. Starting in 2023, new beneficiaries will be given the ability to choose from a number of competing plans that are certified by Medicare and required to guarantee affordable coverage to all seniors, regardless of health history or pre-existing conditions. 

Certified plans, including fee-for-service Medicare, would compete with each other to deliver the same coverage that Medicare offers now or better, at the lowest price. Seniors with lower-incomes would be provided with fully funded health savings accounts to cover any out-of-pocket costs.

I’ve heard that this budget reduces Medicare spending over the next ten years. If no one over 55 is affected, how is that possible?

This budget plan implements some common sense reforms such as putting curbs on frivolous lawsuits.  Abusive and frivolous lawsuits increase health care costs and reduce access to care.  Patients should and will have a right to fair representation and compensation; however current tort laws all too often benefit trial lawyers and drive up costs.

Are there any other solutions out there to solve the problem?

There are alternatives to the plan however they include massive tax increases, large benefit cuts, and the intrusion of federal government bureaucrats making decisions that need to be left between patients and doctors.  If we do not act now, future generations will be forced to pay tax rates higher than ever recorded in our nation’s history.