Pushing for a Medicare overhaul, House Speaker Paul Ryan (R-Wis.) envisions a new privatized program, according to The Washington Post.
Here are six key takeaways:
1. Speaker Ryan's plan transforms the public health insurance program. Individuals eligible for Medicare would receive a fixed contribution to put toward purchase of private insurance, according to Politico. The proposal is designed to manage Medicare's long-term costs, as Speaker Ryan believes the current program is not sustainable for future generations. Medicare's trust fund trustees estimate the program's hospital insurance fund will be insolvent by 2028, according to Politico.
2. Speaker Ryan's approach to Medicare is designed to boost payer competition and encourage more cost awareness among beneficiaries as they select plans, according to The Henry J. Kaiser Family Foundation. Since beneficiaries will have a choice of various health plans, payers will offer more competitive prices, which should result in lower premiums.
3. With a GOP-controlled Congress moving to disband the ACA, Speaker Ryan noted repealing and replacing the ACA would require Medicare changes, according to The Washington Post. Many Republican senators, however, commented they want to focus on repealing the ACA and not touch Medicare right now or for the first year of President-elect Donald Trump's presidency, according to Politico.
4. Democratic senators have taken a strong stance against privatization of Medicare, with incoming Senate Minority Leader Sen. Charles E. Schumer (D-N.Y.), saying, "To Republicans considering going down this path, my advice is simple, turn back," as reported by The Washington Post.
5. President-elect Trump may also present an obstacle for Medicare changes. During an April 2015 speech in New Hampshire, he said he would not cut Medicare, Social Security or Medicaid, according to The Washington Post. During a Fox News Channel interview in November 2015, President-elect Trump reiterated these thoughts by claiming he would "save Medicare," as reported by The Washington Post.
However, he may have shifted his stance on the issue. The healthcare agenda posted on his transition website includes a vow to "modernize Medicare, so that it will be ready for the challenges with the coming retirement of the Baby Boom generation — and beyond." His appointment of Tom Price, MD, as HHS secretary, may signal Medicare reform; Dr. Price previously said Republicans could push Medicare reform through via a "fast-track budget procedure," that would void a Democratic filibuster, according to Politico.
6. As of Dec. 2, Speaker Ryan and President-elect Trump had not discussed Medicare changes. The Trump transition team has not addressed Medicare directly, according to Politico.