Ok that headline is a little over the top.
A recent study by the California-based Kaiser insurance company's far-left-wing "foundation" actually says it cannot "score" the Romney-Ryan or Wyden-Ryan or Rivlin-Ryan or Rivlin-Dominici or any other proposed premium support plan. So Kaiser just made up a premium-support plan of its own, assumed future senior citizens (people under 55 today) would make serial stupid decisions when it comes to selecting Medicare plans after 2018 or 2022, and decided to score the mishmash of what-ifs. Kaiser even assumed insurance companies in their benevolence would have lowered their Medicare health-plan prices by 5% in 2010 if a premium support plan such as Romney-Ryan had been the law in 2010 as compared to what the Medicare health-plan insurers actually bid based on what the law actually was in 2010.
But the Kaiser insurance company study, when you read all of its 40 pages of asterisks and maybes and sort-ofs, basically says seniors would save billions under the Kaiser Make-Believe premium support plan.
And more important, it says they can probably save that money today (but not in all counties in the United States).
This finding agrees with the Harvard-Professors' Make Believe premium support plans of August and September. The Harvard professors (two out of three of the Harvard professors were the same in each month’s study) found that:
Private insurers working under a competitive bidding system would have delivered Medicare Parts A and B less expensively in 2009 than the Medicare-Administrative-Contractor (MAC)-based system delivered Medicare Parts A and B in 2009 IF Wyden-Ryan had been the law (and IF the insurers bid under Wyden-Ryan the way they bid under the 2009 framework/bidding/rebate rules.
All future seniors have to do to save billions is to choose the private Medicare health plan in their county that delivers exactly the same benefits as traditional Medicare. In fact, if current law pertaining to Medicare health plans is continued, future seniors will also get lower co-pays and deductibles plus catastrophic coverage that is not included in traditional Medicare Parts A and B.
Of course -- instead -- these stupid future seniors can choose a Medicare plan administered by another private insurer (sometimes even the same private insurer depending on part of the country), a MAC. MACs are the guys that waste and abuse Medicare to the tune of a hundred billion dollars a year or more according to the former Director of Medicare. If future seniors choose the Medicare behind Door Number Two, the MAC Medicare, they will have higher co-pays and deductibles and potentially ruinous life-time limits.
Hmmm? What do you think seniors will do?
-- Dennis Byron