The Bipartisan Medicare proposal

Senator Ron Wyden (D-Oregon) and Representative Paul Ryan (R-Wisconsin) have introduced a new plan for reforming and saving Medicare. Basically, the plan keeps Medicare in its current form for the elderly but allows the option of choosing a private plan in place of Medicare in the future. Specifically, the proposal provides for no change to the current Medicare program for those who are over 55. Everyone else would participate in a premium-support system (like Ryan's previous plan) except this system would allow Medicare recipients to choose either the current version of Medicare or a Medicare-approved private plan. The private plans must be at least as comprehensive as the current Medicare and they must accept anyone who applies. There also would be subsidies for low-income seniors. The idea here is that private companies would be encouraged to design plans that are more cost effective than Medicare while providing comparable benefits. Since the private insurers (unlike the Medicare system) actually have an incentive to keep costs down, the plan should operate to limit medical costs for the elderly.

This plan is a breakthrough on the entitlement front. Every politician in the country has been telling us that Medicare either is or soon will be bankrupt. A bipartisan plan with a good chance to reduce costs should be greeted warmly in Washington. Of course, president Obama rejected the plan within hours after it was announced. For Obama, it is more important to have centralized government control of the healthcare system than it is to keep down costs so that people can afford to get first quality medical care.

So, here is yet another reason why Obama has got to go.