Why the Wyden-Ryan plan amounts to privatization of Medicare
http://www.commondreams.org/view/2011/12/25-0?print
Why does the Wyden-Ryan plan amount to privatization? A brief glance at the recent history of Medicare is necessary to explain.
Medicare was once dominated by the federal government, where, as a result, administrative costs were low and quality was high. In the 1990's Medicare patients were given an option to have their Medicare services performed by private providers, who were now able to profit off Medicare by charging extra fees for extra services, which they added to the basic amount of funds received via Medicare.
The reason that people often chose private providers was that Medicare funding was being cut and consequently, less services were being offered under traditional Medicare. For those who could afford it, private providers became preferred, since people could then purchase the services they needed but were not offered under traditional Medicare. This "option" created the beginning of a two-tier system of Medicare, opening the door for the systems fracturing.
The Wyden-Ryan plan would crack the nut wide open. But instead of saying privatization, a dirty word, "premium support" is used instead, a sterile sounding term with nasty consequences. It essentially means that each Medicare patient will receive a set amount of money for their Medicare that they can use to "shop" for their insurance. This would be the first time that Medicare spending would be capped, and the rate of growth of this capped fund would not match the rate of growth of health care prices. Once you've accepted the cap, the cap can be continually lowered by Congress or not raised to keep pace with inflation.
Instead of reducing Medicare costs by going after profit-hungry pharmaceutical corporations, patients will have their services curtailed via the cap