Public Health in Oregon - Join The Conversation

Sen. Wyden and Rep. Ryan Release Plan to Reform Medicare

By: NWHF Staff | Posted on: November 1st, 2011 | Share:
Categories: Policies & Laws • Public Health

Oregon’s U.S. Senator Ron Wyden and Wisconsin Representative Paul Ryan have released a new plan to reform Medicare.  Starting in ten years, seniors would have the option of staying in traditional Medicare or entering a privately-run healthcare plan.  These private Medicare plans would be required to offer benefits that are at least as comprehensive as those covered by traditional Medicare.  In addition, all seniors would have a new “catastrophic cap” on out-of-pocket health expenses.  Currently, there is no such cap for Medicare participants.

Starting in 2023, government funding for Medicare would be capped.  Congress would be required to address any budget shortfalls and could institute means-tested premiums and lower fees for providers and drug companies. 

The reform plan has many similarities to the plan Rep. Ryan released earlier this year, including the use of “vouchers” or “premium supports” to allow seniors to access privately-run plans.  One of the biggest differences in the new Wyden-Ryan plan is the option for seniors to remain in traditional Medicare.

“I will never do anything to shred that or weaken it or harm [Medicare] in any way,” Senator Wyden said in an interview with Politico.  “I simply believe that there is now an opportunity for progressives and conservatives to come together and to strengthen the program for the long term and particularly, deal with the costs and demographic challenges.”

Both Sen. Wyden and Rep. Ryan understand the political nature of any reform plan.  Their op-ed in the Wall Street Journal today begins:  “Few issues draw more heated partisan rhetoric than the future of Medicare. Seniors are a reliable and powerful voting bloc, and both Republicans and Democrats are guilty of exploiting Medicare to frighten and entice voters.”

Politico’s daily update on health issues indicated the significance of Wyden’s and Ryan’s partnership with, “We’re pretty sure the health policy world will be buzzing about this one today. As one congressional aide put it to us in an email today: ‘Whoa.’”  Major newspapers across the country are reporting on these developments, including the New York Times, Washington Post, and Bloomberg news service.