In a way, the continuing resolution on the 2011 budget is really a prelude. It has dominated headlines because of the immediacy, and the threat of a government shutdown if no deal is reached. That discussion is ongoing, and while agreement has been reached on a level of cuts, where the cuts fall, and particularly the unrelated policy riders, are up in the air. And time is short.
But it’s next year’s budget, not this one, where Republicans will really seek to transform American society and the social safety net, with major changes to mandatory spending programs. House Budget Committee Chair Paul Ryan will introduce a plan this coming week, which will start with a $1 trillion cut to Medicaid:
House Republicans are planning to cut roughly $1 trillion over 10 years from Medicaid, the government health insurance program for the poor and disabled, as part of their fiscal 2012 budget, which they will unveil early next month, according to several GOP sources [...]
To bolster their cause, GOP leaders point to years of requests from governors to reform Medicaid so their states aren’t on the hook for so much money in the federal-state partnership.
Because the new health care law includes a major expansion of the program, there’s a double bonus for GOP leaders slashing it: It’s a bigger pot than it used to be, and it’s a major component of what Republicans derisively call “Obamacare.”
Fully half of the coverage additions in the Affordable Care Act come from a Medicaid expansion, most of which gets paid for by the federal government. The way Ryan will reach these kinds of savings is by eliminating that expansion, which would deny health insurance to 15 million people, and then turning Medicaid funding into a block grant.
Right now, Medicaid is an entitlement program. That means the federal government, in partnership with the states, must enroll everybody who meets the program’s guidelines. In other words, if millions of additional people become eligible because, say, they lost their job-based insurance in the recession, than the feds and the states have to provide them with coverage and find some way to pay for it. And it can’t be spotty coverage, either. By law, Medicaid coverage must be comprehensive.
At least, that’s the way it works now. If the law changes and Medicaid becomes a block grant, then every year the federal government would simply give the states a lump sum, set by a fixed formula, and let the states make the most of it. Conservatives claim block grants would give states the flexibility they need to make their programs more efficient. But, as Harold Pollack has noted in these pages, states already have some flexibility. And because demand for Medicaid tends to peak during economic downturns, when state tax revenues fall, the likely impact of a block grant scheme would be to make Medicaid even less affordable at the time it is most necessary.
Though Medicaid is seen as a program for the poor, most of all Medicaid spending comes from the elderly and people with disabilities. The elderly are 10% of the enrollees and take up 25% of the benefits; the disabled are 15% of the enrollees and take up 42% of the benefits. That’s specifically who you would hurt with this proposal. States would unquestionably limit enrollment under a block grant scheme; not even Newt Gingrich could deny that. That’s millions more people without health insurance, on top of the 15 million denied coverage because of killing the coverage expansion.
And then there’s the plan for Medicare.
On “Fox News Sunday,” the Wisconsin Republican said the Republicans’ plan would reform Medicaid, funding for which will be shifted into block grants for states. Medicare, under Ryan’s plan, will be reformed into a premium support system for those younger than 55 years old, a proposal similar to the Ryan-Rivlin plan [...]
Democrats could use the plan as a “political weapon,” Ryan said.
“We are giving them a political weapon to go out against us, but they will have to lie and demagogue to make that a political weapon,” he said. “They are going to demagogue us, and it’s that demagoguery that has always prevented political leaders in the past from actually trying to fix the problem. We can’t keep kicking this can down the road.”
I’m pretty sure you don’t have to lie about these plans, just describe them. The Orwellian term “premium support” means one thing: a voucher for individuals to purchase health insurance on the private market, thereby privatizing Medicare 20 to 30 years out. The “savings” come through not raising the level of the voucher over time, making it unable to purchase the same amount of insurance. The plan here is to save money by making old people unable to get well when they get sick. More on that here. Now, if we would simply let seniors use those vouchers to buy into other countries’ health care plans, maybe this would work fine, but I don’t think that’s what Paul Ryan, a globalization enthusiast, has in mind.
We’ve seen how the Democrats have handled the minor-league budget battle; the big leagues are coming up next.




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“We’ve seen how the Democrats have handled the minor-league budget battle; the big leagues are coming up next.”; you got that right and I can’t see any bullpen closer that will be a ‘relief pitcher’.
well, elections have consequences
If the Republicans can use ‘death panels’ to fight Obama’s health care, maybe Democrats can call RyanCare “Kick the Cripple”
except when Democrats win it seems
I’ve replied to many of the recent tin cup emails I get by pointing out that I’ve been poor all my adult life and asking where were the petitioners when I needed them. I wrote to one WI woman that when her teacher mom came to stand with me, I’d go to WI to stand with her. IMO, the middle class has done to the poor what the upper class has done to the middle class. In the midst of middle class anger and anguish, it will be interesting to see how many of the newly arisen will stand with the poor on this issue. Not enough to merit a head count, I’ll bet.
Uh Sarah has a disabled child right? Will she start talking about Republican Death Panels now? What about AZ and Transplant patients?
Any bets the GOP won’t go after Premmie babies next lots of savings there.
As a compromise, the Democrats will, reluctantly, agree to privatize it 40 to 60 years out.
One can always hope for a miracle. Not only would the Republicans need to be defeated next year, but half the Democrats would need to be replaced, including Obama.
I thought the GOP was saying that Family Values were economic issues?
This bill kills families with handicapped children financially and will force many into bankruptcy or to abandon their handicapped kids.
The number one reason for bankruptcy on a home is medical emergencies taking care of a handicapped family member can be expensive.
I wonder if GOPers are investing in Privately run but getting government cash group homes for the handicapped and old?
That Governor in Florida is already trying to cut handicapped funds and he ran homes for old people didn’t he?
“Fully half of the coverage additions in the Affordable Care Act come from a Medicaid expansion,…”
This has been the achilles heel of ACA since the day it was passed. Anything less than a stone cold NO by democrats reveals the utter moral bankruptcy and political gamesmanship under which they operate.
“… the disabled are 15% of the enrollees and take up 42% of the benefits”
Even with no reductions, Medicaid could never survive the influx of new enrollees anticipated under ACA. Doctors willing to accept Medicaid are hard enough to find now. Who would treat the 15 to 20 million newly eligible under ACA?
Scott Walker’s favorite kind of flexibility.
These people are pure evil. They basically want anyone with less than 10 million in the bank to either die or become slave labor. Disgusting.
Book Salon up with Adam Horowitz’s The Goldstone Report: The Legacy of the Landmark Investigation of the Gaza Conflict hosted by Siun
Yes. Proudly pure evil. The sooner we learn this, the better. If the good people of the world don’t, we are doomed.
You don’t understand.
People that aren’t rich are morally inferior to the rich.
The rich got their money honestly and everyone who says they committed “crimes” is just jealous of their success and lazy.
Yep. We just don’t know our place.
Yes. In fact Rand was explicit in demanding that her adoration of unrestrained capitalism must have just that moral core.
Capitalism always works perfectly…unless it harms them personally…then thats a liberals fault.
O named Paulie as one of his favorite guys in i Congress, one of the guys he most likes to work with. Is that scary or what? I mean, Paulie uses way too much hair product and he’s a fascist dickwad besides. What could be worse?
David and many other writers here do such a good job of keeping us informed as to what these folks are up to in the cutting of the safety net. The right would have been successful in framing the Wisconsin assaults on the unions as just another budget negotiation had it not been for them.
But we must not let ourselves be distracted, by concern for the impact of their policies, from also examining just what the wealthy are getting away with and how they are doing it. We do have to understand this is not just a “principled” disagreement in philosophy. By any criteria other than Rand’s they are criminals and evil.
The golden egg here for the medical care industry is that Medicare limits what they will pay to hospitals, doctors, labs, etc., and limits the amount of the difference that can be dumped onto the patient. In other words they don’t pay the full charge, but instead pay what they decide is the fair cost.
It will be a bonanza for the hospitals who will get paid full price for whatever they want to charge. It will eliminate any kind of restraint on the increase of medical cost and so they will go higher and higher.
I just don’t get how poor and minimum wage people defend these ****oles.
How can a poor person want to be libertarian…I just don’t get it.
Ayn Rand was a star****er who wrote for narccisitic sociopaths…how can any person who isn’t rich take the ***** seriously.
And why the hell do dead austrian people from the 1800s trump modern day examples and solutions?
“Well sure, that might have fixed things…but as the leading austrian economist of the 1800s said…”
I used to think that if I got a time machine I’d go back in time and kill hitler or stalin…
But Im starting to think that it would be better if I preemptively wiped out the austrian school of economics or made sure ayn never made it out of russia.
So, let me get this straight. The Republicans want to go to a voucher system where they give recipients a chit to go get insurance on the open market. In reality, this is just a pass-through system to put federal health care dollars directly into private insurer’s hands. The voucher from the federal government goes to the recipient, who gives it to the private insurer. Sweet deal if you’re in the health insurance business.
Am I missing something here? Doesn’t Medicare/Medicaid pay doctors, clinics, hospitals, and durable medical goods companies directly for services? Now, if a voucher system is in place, the private insurers are put in the line-up and get a big cut off the top before all the others I just listed. So where are the big savings? It just seems the dollars are spread more thinly because now the private insurers are getting into act.
It’s a typical republican solution.
Make the rich so obscenely rich that they get bigger lobbyist checks…
Who cares if the solution works or not…they have their free healthcare, screw the rest of us.
AS Duncan typed yesterday, the debate between our two ‘parties’ now seems to be one party thinks these cuts are necessary but a bit sad, and the other party thinks they are necessary and awesome.
How Democrats let that become the debate’s frame is absolutely beyond me.
“So where are the big savings?”
The “savings” come from the fact that the vouchers will not grow as fast as medical/insurance expenses, forcing seniors to shoulder more and more expense until they give up and die. Then they don’t collect Social Security any longer either.
It’s called, “The final solution …”
Actually, in my state, Medicaid is pretty much privatized already. I don’t know about Medicare, but the days of the state/fed paying direct went out in the last years of Clinton when he put the HMOs in charge of Medicaid.
Now, the doctors and clinics get about 40% of what they used to. You might well imagine what this has done to the quality of care people on these programs receive, and many of the doctors don’t even know what’s going on, and they take it out on the patients ( something for nothing).
If Ryan gets this thru, there won’t be ANY money left for anybody but the usual suspects. I wonder if the gov will continue to pay THEIR way?
A friend of mine who works with developmentally disabled adults is watching the program he’s worked for for 5 years being defunded and the people who get care are ready to be thrown into the streets. Many of their families can’t handle them…so, more mentally impaired homeless…..just like in Reagan’s day.
It’s a really frightening scenario.
Of course, vouchers will not cover the full amount of the “private insurance”; the rest of the cost of the coverage will come out of the pockets of those on Medicare and Medicaid. That’s where the insurance companies will profit; a sort of subsidized insurance plan. Can’t afford the extra payment to the insurance companies? Tough…that makes you a loser.
Yes, we’re doing all the things Nazi Germany and Stalin did only using cuts and debts to do it with
delete
Yeah, but under that scenario comparatively few people are going to be able to afford care. I think this would be a big loss for the entire “medical industry”.
Every single Republican must be voted out of office. No exceptions.
No Republicans should be allowed to hold office ever again.
Our very lives depend upon it.
and it’s not just the Republicans… go after the Blue Dog Dems and “New Dems” too.
And while we’re at it, no thanks to Obama, Baucus, and the like for setting this up for failure, rather than providing real health CARE for everyone.
Single payer is a far better option.
The Washington DC elite and the corporate media have been clamoring for entitlement cuts to address the deficit for months now.
It will be interesting to see how they will react now that they see what Paul Ryan has proposed.
Is a proposal “serious” if it is not bipartisan and leaves defense cuts and revenue increases off the table?
Sadly you’re right. The consumer economy failed in the late seventies, so under reagan the middle class sold out the poor, so they could keep buying crap. Under clinton the lower middle class got sold out with NAFTA so the upper middle class could buy more cheap foreign made crap. Well, now the rich have to destroy the upper middle class to keep things going. All those professors, mid level government employees, and the rest of the NPR class who have been telling themselves for thirty years an unrestricted free market can somehow work for everyone are getting a rude awakening.
But they mostly won’t learn. The middle class has more in common with, more community of interests with, and more chance of becoming, the poor than the rich. It’s always been true. People identify up, and the wealthy know how to play that self image fantasy to exquisite advantage. For the truly monied, the middle class, so grateful to be acknowledged by their betters, are the bashi-bazouk, the volunteer canon fodder between themselves and the poor.
The middle class has handed over the keeping of its best interests to an economic class which has no vested interest in its well being. I believe that’s called misaligned incentives. In any case, I stand with those who stand with me and I’ve never noticed the middle class to stand with the poor. Even when they are poor, as they’re increasingly becoming.
I spent 30 years or so without insurance. It can be done. I do believe I can squeeze a health care nickel about as far as a health care nickel can be squeezed.
Pal, you had better pray you never get in a serious accident, contract a life-threatening illness, or become disabled. You will be so completely Fucked, you won’t know which way to turn.
Liberal arts, you don’t know what your missing. No really. Most of those who are poor don’t get a chance to know better care. And, I dare say, most of middle class don’t know hoe substandard it is. So I’m going to tell you my experiences.
I am a very sick woman. I spent over twenty five years working as a therapist/Interfaith minister, nationally certified addiction counselor. I worked in hospitals four five years and then went into private practice, bla bla was middle class bla bla…but will have used Medicaid Insurance the past two years. Medicare starts very soon. Yea! Having exhausted my own insurance and savings and over seven years with no care I went on SSI and then the ‘Caid to ‘Care.
The truth about Medicaid.
1). As is said, “Beggars can’t be Choosers”. Repeat ad-infinitum.
Medicaid pays for my at-home-care, doctor visits minus $3.00 deductible. If I have to go to emergency Room it will pay for the ambulance and visit. Exceptions are if I have the expensive tests run. See $2,000 bills. Medicaid pays for normal blood work panel. Sounds OK so far, huh?
Now, most Drs. don’t take Medicaid. The ones that do, run what I call Medicaid Factories. This means pact clinics or free-standing nasty offices, office staff that are undereducated and have lived and worked a good 200% below the poverty level, 3 minute face time with Dr., and only able have one problem per visit. Awful record keeping. One report stated I am African American. I am white. Oopsie!
Most reports have at least 2 incorrect items in what I told them. These mistakes make serious differences in care and are passed on to other Dr’s. One Dr. wanted 35.00 dollars to print out two sentences that she couldn’t even read. I had been there 4 times. So this is the norm. Records of visits are short and inaccurate. Sub-substandard care is the norm. Did I mention the Drs. don’t care about my name. Hate that. They will not enter into discussion about kinds of care that I will receive. Questions irritate them. God forbid I go in with any expectations.
For example: I had an appointment at 1:30 with GP. I was scheduled for right after lunch. I have to lay done due to my illness. The DR., whom I saw was in his office on the computer, didn’t come in for over an hour. It was Friday. He probably wanted to leave early and most Drs. wait until past-due time to write up reports of findings. You may find this hard to believe but I got up to leave, opened the door, and the Dr. snarled “Where do you think your going?”.
Long story short he screamed at me and told me to “Get out of [his] office”. In fulled disclosure I did remark about his being on his computer but only after he screamed at me. My bad. Names were traded. I did say he was “an an a$$-hole with too much power”. Not sure about that one being my bad. As I left, the waiting room was packed. Some patients were clapping, or smiling, or doing thumbs up to me. As my Aid pushed me out in my wheelchair it had became a joyous experience. Lol.
Too tired to go on.
Next time I write about this I will talk about the mostly non-existing specialists that take Medicaid. And the few who do. And maybe the state of home-care services.
Time to write: 4 hours.