Medicare and Medicaid Deficit Reduction Proposals

Medicare and Medicaid Deficit Reduction proposals

As the United States debt and deficit rises, powerful leaders and different committees propose changes to improve the economy and reduce spendings, especially in programs such as Medicare and Medicaid. As the development of the 2012 Federal Budget moves forward, budget proposals are created. On April 5, 2011, one plan titled as “The Path to Prosperity: Restoring the Americas Promise” was promoted by Paul Ryan, a Chairman of the House Budget Committee, to cut down health costs by converting Medicaid into a block grant program and Medicare into a voucher program. In response to Ryan’s recommendations on April 13, 2011, another plan, “The Presidents’ Framework for Shared Prosperity and Shared Fiscal Responsibility”, was formed by President Obama. This plan focuses on controlling the growth of health care costs for beneficiaries.

In the proposal by Paul Ryan, many changes were requested for the Medicaid and Medicare programs. Medicaid benefits should be secured by converting the program into a block grant program, so states lack restrictions on “program requirements and enrollment criteria” and making it more available to peoples’ needs (Ryan, 2011). Medicaid beneficiaries will be granted more health care options, access to care, and improve the safety measures for low income individuals. Within the next ten years, about $750 billion will be collected to financially stabilize the federal and state government. For the future Medicare beneficiaries, any insurer of their choice will be provided along with a required payment. High risk and low income individuals will receive additional financial assistance. The insured will not be responsible for the cost of any legal actions as a form of higher health care premiums. The savings Medicare earns will not be used for any new health care laws. After a fixed payment method for physician has been established, the Medicare beneficiaries will be able to gain more...