AP: $200/month increase in Medicare premiums under Romney/Ryan

Wow.

A new study by the Kaiser Family Foundation, a non-partisan health care outfit, says that under the kind of voucher plan that Mitt Romney and Paul Ryan are proposing, Medicare costs could up $200/month in some states.

The study makes clear that it is based on the Romney/Ryan plan.

Social Security via Shutterstock

The analysis does not attempt to model any specific proposal, but is generally based on an approach included in House Budget Chairman Paul Ryan’s fiscal year 2013 budget plan, the proposal Chairman Ryan co-sponsored with Senator Ron Wyden of Oregon, and; in the plan put forward by former Senator Pete Domenici and Dr. Alice Rivlin. In the first two proposals, people who are at least 55 years old, including current beneficiaries, would be exempt from the new system. Republican presidential nominee Gov. Mitt Romney has supported a premium-support system along these lines.

And what they found are huge increases for most seniors.

Nearly six in 10 Medicare beneficiaries nationally could face higher premiums for Medicare benefits, assuming current plan preferences, including more than half of beneficiaries enrolled in traditional Medicare and almost nine in 10 Medicare Advantage enrollees. Even if as many as one-quarter of all beneficiaries moved into a low-cost plan offered in their area, the new system would still result in more than a third of all beneficiaries facing higher premiums.

Premiums for traditional Medicare would vary widely based on geography under the proposed premium support system, with no increase for beneficiaries living in Alaska, Delaware, Hawaii, Wyoming and the District of Columbia, but an average increase of at least $100 per month in California, Florida, Michigan, New Jersey, Nevada and New York. Such variations would exist even within a state, with traditional Medicare premiums remaining unchanged in California’s San Francisco and Sacramento counties and rising by more than $200 per month in Los Angeles and Orange counties.

At least nine in 10 Medicare beneficiaries in Connecticut, Florida, Massachusetts and New Jersey would face higher premiums in their current plan. Many counties in those states have relatively high per-beneficiary Medicare spending, which would make it more costly to enroll in traditional Medicare rather than one of the low-bidding private plans in those counties. In contrast, in areas with relatively low Medicare per-capita spending, it could be more costly to enroll in a private plan.

AP has more.


Follow me on Twitter: @aravosis | @americablog | @americabloggay | Facebook | Google+. John Aravosis is the editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown (1989); and worked in the US Senate, World Bank, Children's Defense Fund, and as a stringer for the Economist. Frequent TV pundit: O'Reilly Factor, Hardball, World News Tonight, Nightline & Reliable Sources. Bio, .

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  • Catherina Lucy

    Obama’s plan will ensure 100% of seniors would pay more for Medicare when our nation has no money left to fund it.

    http://www.medicaredelaware.com/

  • Sydney Atkinson

    The Romney/Ryan Medicare plan would be tragic for those 55 & younger, especially Generation Jones, which at 46 to 57 years old, has paid too much over the years into this entitlement, and is too close to retirement now to have to change now. I found this new YouTube video on the topic pretty compelling, not just because of the many prominent politicians in it, but because the message needs to be heard: http://www.youtube.com/watch?v=Avrvh7_J1jw&feature=plcp

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