Frequently Asked Questions About Mitt’s Plan
What are the immediate effects of this plan?
This plan has no effect on current seniors or those nearing retirement. It will go into effect for younger Americans when they reach retirement in the future.
This plan has no effect on current seniors or those nearing retirement. It will go into effect for younger Americans when they reach retirement in the future.
How is this different from the Ryan Plan?
Shortly after Mitt presented the proposal described here, Congressman Paul Ryan and Senator Ron Wyden introduced a bipartisan proposal that almost precisely mirrors Mitt’s ideas. Unsurprisingly, the Obama administration immediately rejected the proposal. Mitt has applauded the Ryan-Wyden effort and looks forward to working as president with leaders from both sides of the aisle to implement meaningful reforms that will preserve Medicare for future generations.
Shortly after Mitt presented the proposal described here, Congressman Paul Ryan and Senator Ron Wyden introduced a bipartisan proposal that almost precisely mirrors Mitt’s ideas. Unsurprisingly, the Obama administration immediately rejected the proposal. Mitt has applauded the Ryan-Wyden effort and looks forward to working as president with leaders from both sides of the aisle to implement meaningful reforms that will preserve Medicare for future generations.
How high will the premium support be? How quickly will it grow?
Mitt continues to work on refining the details of his plan, and he is exploring different options for ensuring that future seniors receive the premium support they need while also ensuring that competitive pressures encourage providers to improve quality and control cost. His goal is for Medicare to offer every senior affordable options that provide coverage and service at least as good as what today’s seniors receive. Lower income seniors in the future will receive the most generous benefits to ensure that they are able to get care every bit as good as that provided in the current Medicare program.
Mitt continues to work on refining the details of his plan, and he is exploring different options for ensuring that future seniors receive the premium support they need while also ensuring that competitive pressures encourage providers to improve quality and control cost. His goal is for Medicare to offer every senior affordable options that provide coverage and service at least as good as what today’s seniors receive. Lower income seniors in the future will receive the most generous benefits to ensure that they are able to get care every bit as good as that provided in the current Medicare program.
How will the plan impact total Medicare spending?
The total impact on spending will depend on a number of factors, including the rate of premium support increase and the effect of competitive pressure on providers. By replacing the inefficiency of the current system with a competitive, market-oriented system in which every provider – including the government – wants to find the most efficient way to provide high quality care, the plan puts the future of Medicare on a sound footing to meet the needs of future generations.
The total impact on spending will depend on a number of factors, including the rate of premium support increase and the effect of competitive pressure on providers. By replacing the inefficiency of the current system with a competitive, market-oriented system in which every provider – including the government – wants to find the most efficient way to provide high quality care, the plan puts the future of Medicare on a sound footing to meet the needs of future generations.
How will traditional Medicare remain an option?
Traditional Medicare will compete against private plans. It will be operated by the government and funded by premiums, co-insurance, and deductibles that are set at the level necessary to cover its costs. The attractiveness of this option to future seniors will depend on how its efficiency and quality compares to that offered by other providers in the marketplace. Future seniors will benefit from the innovation and competition among options.
Traditional Medicare will compete against private plans. It will be operated by the government and funded by premiums, co-insurance, and deductibles that are set at the level necessary to cover its costs. The attractiveness of this option to future seniors will depend on how its efficiency and quality compares to that offered by other providers in the marketplace. Future seniors will benefit from the innovation and competition among options.
How will seniors be affected by the costs of different options?
Future seniors will be able to enjoy the savings from selecting less expensive plans, or choose to pay more for costlier options. When the insurance premium costs less than the support provided, the balance will be available in an HSA-like account to pay for other out-of-pocket health expenses.
Future seniors will be able to enjoy the savings from selecting less expensive plans, or choose to pay more for costlier options. When the insurance premium costs less than the support provided, the balance will be available in an HSA-like account to pay for other out-of-pocket health expenses.
Key Elements of Mitt’s Plan
- Nothing changes for current seniors or those nearing retirement
- Medicare is reformed as a premium support system, meaning that existing spending is repackaged as a fixed-amount benefit to each senior that he or she can use to purchase an insurance plan
- All insurance plans must offer coverage at least comparable to what Medicare provides today
- If seniors choose more expensive plans, they will have to pay the difference between the support amount and the premium price; if they choose less expensive plans, they can use any leftover support to pay other medical expenses like co-pays and deductibles
- “Traditional” fee-for-service Medicare will be offered by the government as an insurance plan, meaning that seniors can purchase that form of coverage if they prefer it; however, if it costs the government more to provide that service than it costs private plans to offer their versions, then the premiums charged by the government will have to be higher and seniors will have to pay the difference to enroll in the traditional Medicare option
- Lower income seniors will receive more generous support to ensure that they can afford coverage; wealthier seniors will receive less support
- Competition among plans to provide high quality service while charging low premiums will hold costs down while also improving the quality of coverage enjoyed by seniors
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