The selection of Paul Ryan as the Vice Presidential nominee on the Republican side meant that Senator Ron Wyden’s name would suddenly come up a lot in national political discussions. Wyden doesn’t appear on Sunday shows much and he comes from a Western state, so he’s typically an un-politician among the Beltway elite. But he drafted a white paper with Ryan about a potential premium support program for Medicare, and so he has been name-checked by the GOP Presidential ticket at every opportunity over the past week.
It’s undeniable that Wyden collaborated with Ryan on the plan, which would end automatic placement in traditional Medicare and instead give seniors a choice of how to spend their voucher, in a government-run Medicare program or with a menu of private insurers.
Sitting next to Ryan at the Bipartisan Policy Center event, Wyden said, “There’s a window of opportunity here, a chance to change the conversation, lower the decibel level … and see if we can bring together progressives and conservatives” to create a system in which people on Medicare choose a private-sector health plan or traditional Medicare, if they want.
Wyden said their plan was “a model driven by choices and competition, here with traditional Medicare, and approaches that would come from the private sector, innovation that the private sector offers. We believe it’s going to work … .”
He added later at that event that their plan “makes some of the old discussion potentially irrelevant.”
Now Wyden is trying to disavow himself from the plan he proposed, saying it bears no resemblance to what Mitt Romney and Paul Ryan would actually do to Medicare.
Here are Wyden’s main points. First, Romney would repeal the Affordable Care Act, which Wyden says is crucial to preserve, particularly the changes in Medicare relative to delivery system reforms (like paying for quality instead of quantity, for example, or coordinated care), in order for his Medicare premium support plan to work. Second, Romney’s plan for Medicaid, by block-granting the program, would undermine the Medicare plan as well, because dual eligibles who qualify for Medicare and Medicaid would lose their coverage under Medicaid.
These changes were already contemplated by Ryan in his budget before Wyden worked on the white paper with him, so it doesn’t afford Wyden much protection from the charges that he was duped. But he said that House Republicans and Romney, at the top of the ticket, rejected the evolution of Ryan’s thinking from his initial “end Medicare as we know it” budget to the Ryan/Wyden white paper. This is why Wyden spoke against the Medicare plan in the House Republican budget, and voted against it on the Senate floor.
None of this gets at the question of why it makes sense to do the premium support plan on its own. Under the plan, Medicare’s risk pool would gradually shrink as some choose the private plans. Costs would allegedly be kept down through competitive bidding, with the cost of the voucher equal to either the lowest-cost or the second-lowest-cost coverage available. But costs inside Medicare and Medicaid have consistently fallen well below costs of health care in the private market. And you’d only be diluting the risk pools on both ends, by adding older, sicker people to private insurance, and removing the younger, relatively healthier elderly from Medicare. This turns the market for the elderly into an ideal form of the Affordable Care Act, with an exchange and a public option. But there is no public option for the under-65 crowd. If that were part of the equation, and you had an integrated system, then you could at least start the conversation. But nobody’s really calling for that, and furthermore, Republicans are undermining other public health programs like Medicaid. So all this does is weaken traditional Medicare, the lowest-cost program for health coverage out there, for nothing in return.
Wyden doesn’t want to admit this, but he’s stuck with the program he proposed. His claim that private health insurance already is an option for seniors, thanks to Medicare Advantage, elides the point that Medicare Advantage is so wasteful that Democrats were able to find hundreds of billions in savings just by cutting the overpayments. There’s every reason to believe that such a bubble would build up again, in a “competitive” market between Medicare and private insurance.
Ryan/Wyden wasn’t a very good idea. Wyden makes some good points in saying why the landscape has changed. I wish he would take the same critical eye to his own plan.




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Dean Baker is talking about Ron Wyden when he says “corrupt Democratic establishment folk”
must read!!!
“And sure enough, as Dean Baker points out, a gang of incredibly wealthy CEOs are planning to gut entitlements regardless of which candidate wins in 2012. It’s not just CEOs, of course, it’s also the usual gang of corrupt Democratic establishment folk”
http://truth-out.org/news/item/10692-obamas-second-term-agenda-cutting-social-security-medicare-and-or-medicaid
Ron Wyden and his kind must be run out of the Dem Party or thrown under the bus as much as possible
Romney and Ryan should run ADS showing how Corrupt Dems like Ron Wyden and Erskine Bowles are in love with all of their ideas!
If Obama loses the White House and Dems win the House and Senate, this could mess up the Elites plans
The OBAMA problem everyone wants to ignore
Ohio polling is showing something that should concern Obama a lot, and make Dems run away from OBAMA
Obama is only leading Romney by 3 points
Sherrod Brown is leading his challenger by 12 points
This means a lot of Dems are not voting for OBAMA, however they are voting Down Ticket.
Wyden’s best argument is that his plan is not fundamentally worse than the ACA. The same problems with the Wyden plan occur in the ACA, albeit more gradually. Subsidies become inadequate. The Cadillac tax will hit more and more people. What the Wyden plan has that the ACA doesn’t is a global budget. But eventually the ACA will need this too since “delivery system reforms” is a drop in the bucket compared to the savings that are needed.
Of course Wyden can’t say this because that would open up a new can of worms for Obama.
Yeah, good luck with that, Senator Dumbass.
Jane and everyone at FDL should be enjoying a well earned victory lap. Pete Peterson and the rest of the Catfood commission has to be apoplectic at the site of Romney and Ryan defending Medicare. The inability of the health insurance oligopoly to even mount a defense is particularly noteworthy.
Wyden strikes me as kind of a wonk. I have colleagues like that who think everything would be just hunky-dory if the dastard ‘libruls’ like Pelosi (??) would just let the sensible people do their job. I know nothing about him, but if this is representative of his work, it shows just how out of touch he is with the reality of contemporary American politics.
The plan would end up starving the medicare vouchers and feeding the private vouchers essentially by reducing the services offered by medicare. The private insurers would lobby for more and more–all the while whining about how unfair and hard it is to compete with big government medicare–and congress would be happy to oblige with greater subsidies.
Why is this a given? Are you assuming “older, sicker people” would choose the private plan over Medicare? Because the proposal seems, at the moment, to be a program of choice. That is almost guaranteed to morph into a program of no choice were it actually enacted, but it’s all supposes right now. Right now, I’m not at all convinced “older, sicker people” would choose a private plan.
Medicare Advantage is a taxpayer subsidized gift to private insurance companies. I wouldn’t use it as an example of what a future choice would look like. The people who push these “solutions” are really aiming at final solutions and they don’t intend to spend a penny on social programs of any description that don’t exclusively, entirely benefit them. Proper lords of the manor, they are.
Why can’t the Democrats figure out how to say we cut $700 billion in costs from Medicare not $700 billion in benefits?
Are they that inept? (see supposedly brilliant Rachael Maddow’s and Debbie Wasserman Schultz’s lame defenses, ie none)
Have you heard the Right attacking this? It’s like taking candy from babies.
Hey Petey and Alan: How are them anuerysms workin’ out for ya? Have a heapin’ helpin’ of some of that tasty Friskies Senior Mix. Should bring you right around…
Test. (Sorry. Computer gremlins.)
Romney and Ryan are not the only ones who hate the Middle Class and the Poor, Ron Wyden and Rahm Emanuel also hate the poor and the middle class. Ron Wyden and Rahm Emanuel are buddies of Obama
“Grand Ma use to say, people will judge you by the company you keep”
“Mayor Rahm Emanuel has spoken out against a proposal that would use the government’s power of eminent domain to help mitigate Chicago’s foreclosure crisis.”The idea of using eminent domain is not one I support … because I?”
Read more: http://www.chicagorealestatedaily.com/article/20120814/CRED0701/120819899/mayor-opposes-using-eminent-domain-to-combat-foreclosures#ixzz23eC1ebjC
Obama buddies seem to hate the poor and the middle class a lot?
What has Obama done for the USA middle class? or poor? anything?
As the saying attributed to Benjamin Franklin goes,
If you lie down with dogs, you get up with fleas.
I think:
When you run a monopoly what’s
even better than charging different
prices for different people like a
pricing control freak is having
the government help pay a higher
than otherwise price along with,
where appropriate to the monopolist,
taking the lion’s share of the risk.
These people will be the ones with
the obnoxious self-important faces.
But they’ll typically actually be
clueless, only the very few, including
I’m guessing the ones play acting in the
woods (in women’s clothes?) but nonetheless
enjoying the transfering of fear so as to
control and conflate bad morality with
the opposite of control, which is what
FDR explained: the only thing
we have to fear is fear itself.
Obama replaced an obvious shell game
with the above with the cartel having
a free hand with those who’re rich and
free from risk factors. But it’s still
a cartel’s delight.
Which has to be why it was voted in by
senators who prior thereto had just
been exposed as really be joined at
the hip with the insurers.
The name of the game is deception.
I’ve had my own fascinations in the area
of deception in our lives today.
It seems to be a product of people
who love to scapegoat as well as those
who just love themselves.
They had ill-prepared or ill-suited
parents, having nothing to do, of course,
with sexual orientation.
Job/family–lack of response to a reply
does not mean disinterest on my part.
However, I do stand by a while, of course,
as doing less really would be obnoxious.
Bye for now.
I anticipated a couple obvious Q’s.
Safety nets are good, of course.
Adam Smith actually was a profoundly
compassionate man who advocated them, along
with not abusing labor, though the mouthpieces
supporting the super-rich cite the opposite,
falsely.
I would agree with Smith corp’s are great
at applying resources for next greatest return.
But he never advocated monopolies.
The U.S. is supposed to be about freedom and
after T. Roosevelt anti-monopoly.
That is obviously entirely incongruent for
the person who’s a control freak, an ego-
challenged person, or the person who obnoxiously
believes in one dollar one vote (Eleanor R. had it
right: one person one vote) or plutocracy
generally (I think if you toss the control
freak part everyone is educated and has
no need for annoying plutocrats.)
Now it really is a bientot.
Here in Portland Wyden is referred to as:Sen Ron Wyden(R) N.Y. /s
Wyden has thrown the elderly under the bus, whom were the power (Called the Gray Panthers) getting him into and sustaining his continued position as the senior Senator from
N.Y.Oregon. He has systematically moved way right of his avowed protection of the elderly, ostensibly for elder statesman status, imo anyway.Here’s a link to a recent post on Jacks Blog, a Portland (almost!) institution in the blogosphere. You can search other articles about WQyden on this blog as well.
He has not been any substantive help with the water issues here either.
In shortm the (R)N.Y. seems appropriate, again, imo.
Actually, factually, easy to do when you consider that the real reason that health care costs of Europe and Japan are lower is because their MRIs just cost a lot less than our MRIs. We get overcharged for the same service.
-stewartm, Why? It’s the *profit*, stupid.