Fix Health Care Policy

Presidential Debate Prep: Understanding Obamacare’s $716 Billion in Cuts to Medicare

As the Medicare debate intensifies, there still seems to be popular confusion regarding the $716 billion in “savings” from Obamacare’s Medicare payment cuts. Let us end the confusion.

Which Parts of Medicare Will Be Cut?

In Obamacare, the payment cuts are across-the-board cuts (modifications of Medicare’s complex payment formulas) made throughout the bulk of the Medicare program. According to the nonpartisan Congressional Budget Office (CBO), these cuts will decrease Medicare spending by an estimated $716 billion between 2013 and 2022.

The money is cut from hospital services, Medicare Advantage, skilled nursing services, hospice services, and other Medicare services. To be clear, the cuts do not target individual institutions or medical organizations suspected of waste, fraud, or abuse. (continues below chart)

Read the rest on The Foundry…

Tags: $716 billion, Congressional Budget Office, Medicare, Medicare Advantage cuts, presidential debate, spending

Debate 2012: Obama’s Dubious Medicare “Voucher” Claim

President Obama made an oft-repeated claim on Medicare during Wednesday night’s presidential debate that distorts attempts to reform the program.

The president accused Governor Mitt Romney of favoring a “voucher” program for Medicare, by citing, ironically, a plan previously supported by Romney’s running mate, Representative Paul Ryan. The voucher label can be politically toxic, but bears little resemblance to Ryan’s actual Medicare proposal (in its most recent iteration).

Heritage’s Robert Moffit explained in a National Review column:

It’s all scary nonsense. The Ryan proposal, among others, is a defined-contribution system that in, say, 2023 would provide direct payment from a government account to a health plan of a person’s choice, including traditional Medicare; health plans, including employer-based retiree plans, would have to meet government standards, including benefit standards of the traditional Medicare program, plus new and much-needed protections against the costs of catastrophic illness; all such plans would be offered through a Medicare exchange; all such plans would be governed by existing Medicare insurance rules, meaning persons could not be legally denied coverage or dropped merely because they are sick; low-income persons would be specially protected from unforeseen out-of-pocket cost hikes; and all enrollees would benefit from an improved risk adjustment among plans in the competitive market to guarantee continuity of patient care and health-plan stability.

A voucher is, of course, a defined contribution; but not all defined contribution programs are “vouchers.” A voucher is just one form of defined contribution. TheMerriam Webster definition of a voucher is a “form or check indicating a credit against future purchases or expenditures.” Many ordinary Americans have had some experience with vouchers when their flights were cancelled or delayed, and airlines issued them compensatory certificates redeemable in cash value for the purchase of food and lodging.

Read the rest on The Foundry…

Tags: Gov. Mitt Romney, Medicare, myth, ObamaCare, premium support, President Obama, presidential debate, voucher

VIDEO: Pre-Presidential Debate Highlights Policy Differences

DENVER — Conservatives and progressives duked it out over policy Wednesday morning ahead of the first presidential debate of 2012 at the University of Denver.

The Heritage Foundation and The Independence Institute hosted a wide-ranging pre-presidential policy debate in Denver, featuring policy experts and commentators from both sides of the political aisle.

The economy and job creation, immigration, health care, entitlement spending, and energy were among the contentious topics or “bucket” issues discussed by the speakers.

Conservative panelists included Bill Beach, director of Heritage’s Center for Data Analysis and author of The Index of Dependence on Government. Beach was joined Mike Franc, vice president of government studies at Heritage; Amy Oliver Cooke, executive vice president and director of energy policy at The Independence Institute; and former Rep. Bob Beauprez of Colorado.

Watch the video on The Foundry…

Tags: Denver, domestic policy, government dependency, health care, Obama, ObamaCare, presidential debate, repeal the law, Romney