Last year: “Democrats are killing Medicare!” – Republicans
This year: “We want to kill Medicare!” – Republicans
The Republicans keep saying “today’s seniors won’t see any change in their coverage.” But if you happen to be 54 or 53 or younger – look out. What do you think a health insurance policy will cost a senior at the age of 65 in about 10, 15 years?
From the Center for Economic Policy Reserach: Representative Ryan would replace the current Medicare program with a voucher for people who turn age 65 in 2022 and later. This voucher would be worth $8,000 in for someone turning age 65 in that year. It would rise in step with with the consumer price index and also as people age.
According to the CBO analysis the benefit would cover 32 percent of the cost of a health insurance package equivalent to the current Medicare benefit. This means that the beneficiary would pay 68 percent of the cost of this package.
Using the CBO assumption of 2.5 percent annual inflation, the voucher would have grown to $9,750 by 2030. This means that a Medicare type plan for someone age 65 would be $30,460 under Representative Ryan’s plan, leaving seniors with a bill of $20,700.
According to the Social Security trustees, the benefit for a medium wage earner who first starts collecting benefits at age 65 in 2030 would be $32,200.
Do the math kids. Not looking so good, huh?