Paul Ryan's Health Care Reform Plan
I first wrote this hub while Paul Ryan was running for Vice President as Romney's running mate. The following material is based on the plan that he had at that time. His current plan is similar but is more robust about state's rights and entitlements.
After participating in several forums about Paul Ryan and his plan, I went to his web site and downloaded his 65 page plan. The first 34 pages are the introduction to the plan, followed by each category of the plan and a summary of each category. This hub summarizes his Health Care Reform Plan.
Organization of the Plan
The plan is called A Roadmap to America's future and is organized into the following eight categories.
- Title 1 - Health Care Reform
- Title 2 - Medicaid and SCHIP Reform
- Title 3 - Medicare Reform
- Title 4 - Social Security Reform
- Title 5 - Simplified Income Tax
- Title 6 - Business Consumption Tax
- Title 7 - Job Training Reform
- Title 8 - Budget Process Reform
Title 1 Health Care Reform
The plan proposes a $2,300. tax credit for individual filers and $5,700 for joint filers per year. Here is how it would work: At the beginning of a year or at the end of the year, you would file for a refund on your tax return for the eligible amount. The payment is made directly to the health plan you have chosen that best suits your needs. If you don't spend all the money on your health care, you get to keep the difference. If your health care costs are higher than the eligible amount, then it is up to you to make up the difference.
It should be noted, this plan does not apply to those already on medicare or in the military.
The plan is portable and can be carried from employer to employer if you change jobs. There will be high risk pools at the state level for those who would otherwise be denied coverage for pre-existing conditions. State base exchanges will give each person an opportunity to choose the plan that best fits their needs.
The refundable tax credit is adjusted for inflation specifically, by an average of consumer price index and the percentage of increase in the medical care component of the consumer price index
Individuals who live in one state will be allowed to buy a more affordable health insurance plan in another state. Health insurance providers would be able to sell their polices in every state.
State Based Exchanges
This plan would require the states to contract with health insurance companies to run the exchanges It would prohibit state exchanges from discriminating on pre-existing conditions. The plan would have the following features:
- Auto enrollment
- High Risk Pools- each state will ensure pools are funded to help low-income folks from paying excessively high premiums.
My Take on His Plan
It seems to me that if he is going to run his plan in parallel to the current medicare plan. That is, if you are currently on medicare, this plan will not affect you. However running two plans together seems like it would require more federal government not less. He is also requiring the states take over many of the responsibilities of the plan. But those requirements have to be overseen by some watchdog group, again the federal government. Also if your medical costs are more than the refundable tax credit (voucher), the balance would have to be paid out of pocket.
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