The House Republican budget presented by Rep. Paul Ryan calls for Medicare to be transformed from a fee-for-service plan into a "premium support" program. Alice Rivlin, a good Democrat, was OMB Director under Bill Clinton. She also worked with Ryan to refine the premium support concept. I asked her to describe how the ideas works. Here's what she said:
"Under premium support, the beneficiary gets a choice of plans. you go to an exchange and you choose a plan and then the government pays the plan. They don't pay you, they pay the plan. And they pay a risk adjusted amount -- adjusted for your age and how healthy you are. So if you are older and sicker, the plan gets paid more for taking care of you. . . . And you would hope that in such a marketplace, the more efficient, the more effective plans would get more people."
Does this sound familiar? It should. It bears more than a passing resemblance to "Obamacare."
Source: http://www.pbs.org/nbr/blog/2011/04/what_is_premium_support_for_me.html
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