Federal Deficit Proposals/Impact on Elders-4/14/11

posted Apr 15, 2011, 4:51 AM by Frank Baskin   [ updated Jun 10, 2011, 6:30 AM ]
There are two proposals to reduce the federal deficit. Each will impact elders. Rep Paul Ryan  privatizes Medicare. His proposal also sets up a means test....FOR MORE CLICK TITLE...for Medicare. Eligibility, in part, would be based on each individual's finances. Each person would have to purchase health care insurance from private health insurance companies. The amount allowed for each person would be less than the cost of care at that time. This could increase the cost for each individual. He would also increase the age of eligibility for Medicare from 65 to 67. His proposals would impact those who are currently under age 55.
He sets up block grants for Medicaid. Each State would establish their own individual service delivery system and eligibility requiements. Federal requirements and protections would be diminished and prehaps eliminated. Currently, the Federal government establishes minimum standards for Medicaid in all of the States. Each State may deliver services which go beyond those standards or base lines. Elders(and those with disabilities) account for about two-thirds of all Medicaid spending.
The President also submitted a proposal which impacts Medicare and Medicaid. It maintains both programs but attempts to decrease costs. Specifics are not yet available.