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Richard Kirsch

Richard Kirsch

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Paul Ryan and the "M" Word

Posted: 04/ 7/11 02:47 PM ET

USAction President William McNary, one of the most powerful voices of my generation, often reminds us that budgets are not about numbers; budgets are moral documents, a statement of our values and priorities. Paul Ryan, the Republican Budget Committee Chair, agrees with McNary's attention to values, saying that the goal of his proposed budget plan is to "... leave our children and our grandchildren with a debt-free nation. It is a moral imperative."

Philosophers have written volumes on whether morality can be absolute or is always relative -- one man's morality is another man's offense -- so I'd take Ryan's statement of his concerns about the moral transcendence of the national debt at face value except for one thing: His budget includes $4 trillion in tax cuts, including $1.5 trillion to corporations and higher-income individuals. If avoiding the saddling of our children with debt were Ryan's true moral compass, then lowering tax rates would be off his map. Despite Ryan's boy scout earnestness, he is really driven by an ideology of eviscerating government and denying our responsibility to care for each other.

As progressives, we should welcome a values debate with Ryan and his supporters. The centerpiece of Ryan's vision for the future, his dismantling of the nation's public health insurance programs and repealing of the Affordable Care Act, is in sharp contrast with our own vision. Ryan's health proposals would reduce federal debt by making families destitute and would result in tens of thousands of Americans dying each year because they do not have health coverage. His proposals would enrich the private insurance industry and protect the interests that are most responsible for high health care costs.

Ryan's budget would replace Medicare, the nation's national health insurance program for seniors and people with serious disabilities, with vouchers to buy private insurance. The Ryan voucher plan is not about controlling health care costs; instead, it is intended to shift costs from the federal government to the seniors and the disabled who are covered by Medicare. We have decades of evidence that Medicare does a better job of controlling health care costs than private insurance. Health care costs have increased at a significantly lower rate under Medicare than in private insurance plans, chiefly because Medicare is much better able to limit how much it pays to doctors and hospitals. The private insurance plans that now cover about one out of five Medicare patients do so at a cost that is 13% greater than Medicare pays for the same benefits (cost overruns that will be significantly reduced by the Affordable Care Act). Insurers reap substantial profits from these private Medicare plans, profits that would soar if the entire Medicare population were handed over to the health insurance industry. And because private insurance has failed to rein in doctor and hospital costs as effectively as Medicare, health care providers would be enriched too.

Ryan's plan does cut health care costs in one macabre way: When people can't afford the care they need -- and the CBO reports that the Ryan plan will double the already high cost of health care to seniors -- they die sooner. From a dollar-driven point of view, a cynical person might argue that a retired senior who is not being a productive worker and has no savings left to be a productive consumer is really a drain on society. Which leads us to the Ryan plan to ruin Medicaid by replacing a program that now entitles low-income people to health coverage with a block grant to states to spend however they want on health care for the poor. In this instance, the federal government saves money by decreasing what it pays to state governments and states get to do the dirty work of cutting people's health care.

Ryan and the Republicans are betting on the notion that people think Medicaid is for "those people," the undeserving poor (a tautology for Republicans). Putting aside the fact that the low-income people who qualify for Medicaid are women, children and the working poor, what a great many Americans actually experience is that Medicaid is a program for their parents and grandparents. Seventy percent of Americans in nursing homes are on Medicaid and two-thirds of Medicaid expenditures are on the elderly and disabled. So after the Medicaid voucher program bankrupts seniors so that they would qualify for Medicaid, Ryan would pull that rug out from them too, as states would be forced to cut the biggest cost in the Medicaid program, long-term care.

The other way states could make up for the lost federal revenue is by cutting health coverage entirely, or providing skimpy coverage with high out-of-pocket costs, to women and children and other low-income people who are covered by Medicaid. By increasing the number of uninsured, Ryan's plan would result in the death of even more people, since for every one million people that are uninsured, about 1,000 people die a year due to the lack of health coverage.

The Ryan budget also eliminates the state children's health insurance program, which covers millions of children in moderate-income working families who earn too much for Medicaid. And it eliminates the coverage provisions of the Affordable Care Act, which, by expanding Medicaid to 133% of the federal poverty level and providing income-based subsidies to buy coverage for millions of families who don't get coverage at work, would cover 32 million uninsured. That's not all: Ryan would also raise the age to qualify for Medicare from 65 to 67, adding that age group to the uninsured for the first time since Medicare began in 1965.

I've lost track at this point of the number of people who such changes to the nation's health care coverage system would kill each year -- certainly upwards of 40,000. Who knows? And millions more would be saddled with personal debt or driven into bankruptcy.

Progressives have moral alternatives to Ryan's dark vision. The Affordable Care Act is a good start, as it reduces the federal debt while covering 32 million people a year, relieves millions more of medical debt and begins to control costs at their root: over-payments and wrong incentives to health care providers. Much more can be done in this last area to move from a health care system that relies on a failed free market to control health care costs. The successful route to controlling costs is that which was taken in many other nations: a national health care plan that controls the methods and amounts that health care providers are paid. For example, we can set the prices we pay for prescription drugs, which other nations do, cutting drug prices in half. We can provide hospitals with global budgets, giving them an incentive to reduce the amount of disease in a community and not duplicate services provided by other hospitals. And if we really want to follow Ryan's example of politically difficult policy approaches that are visionary, we could move to a national health care plan that covers everyone as a matter of right, with comprehensive coverage and low out-of-pocket costs, financed through taxes. That's the vision that would lower health care costs and lead to a prosperous, healthy future for all Americans.

Cross-posted from New Deal 2.0.

 
USAction President William McNary, one of the most powerful voices of my generation, often reminds us that budgets are not about numbers; budgets are moral documents, a statement of our values and pri...
USAction President William McNary, one of the most powerful voices of my generation, often reminds us that budgets are not about numbers; budgets are moral documents, a statement of our values and pri...
 
 
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09:39 AM on 04/10/2011
Our leaders want us to pay more than any other country for health care and health insurance, but expect us to compete with those who get free health care overseas. Our corporations are sitting on trillions of dollars rather than hiring more and paying higher wages.

Some talk of paying for health outcomes. How are outcomes decided and what are they based on?
Is it if the patient lives? Is it if a patient lives and is good condition? If the patient lives but is bed fast are the doctors paid less? You can give the same treatment to 3 people and the outcomes will be different.
06:49 AM on 04/08/2011
The prescription D plan is no good if you have to buy brand names that have no generics. Ryan wants to model all of Medicare after the prescription D plan.
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rainkitty
01:26 AM on 04/08/2011
"Further privatization of Medicare will also increase the fragmentation of our health care financing, which will weaken the program’s ability to negotiate fair prices for goods and services. Ryan describes this change as similar to Medicare part D, for which he voted in 2003. This is another scary thought. The result of Medicare part D was greater confusion and obstacles for seniors, a huge new burden on taxpayers, and windfall profits for the pharmaceutical industry."
http://www.pnhp.org/news/2011/april/ryan-turns-knife-on-medicare-medicaid
BEWARE OF CORPORATE INFLUENCE IN HEALTH REFORM:
http://www.pnhp.org/news/2011/april/beware-of-corporate-influence-in-health-reform
Physicians for a National Health Program (www.pnhp.org) is an organization of 18,000 physicians who advocate for single-payer national health insurance, an improved Medicare for all.
11:32 PM on 04/07/2011
All those evil socialist European nations provide for the health of their people at less cost than us, and with better health outcomes. Imagine that!
06:59 AM on 04/08/2011
Living in one of the "evil socialist European nations" - I am proud we still have a health care to half you costs, with far more better quality according WHO, giving it to all people, with doctors thinking about our health instead of their wallets, and knowing we have good access. Everything is not perfect, not at all, but compared to the US system it´s like heaven.
10:42 PM on 04/07/2011
Where is the mainstream media; why are they hiding this play by the GOP!

This has got to be a line in the sand.
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chaotician1
10:26 AM on 04/08/2011
MSM is corporate America; led by FOX propaganda corruption; a recycling machine for the corporate bribes of our government; a barrier to any opposition to corporate controlled political parties; a tool for sophisticated marketing of retail junk, incompetent corporate lackeys as candidates, and jingoistic avoidance of responsibility for corporate criminal actions!
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tacevad
American SS Card Carrying Socialist
09:53 PM on 04/07/2011
Hopefully there are investigations taking place into Ryan the way he wants to investigate others.
Republicans time and again have shown that the very things they cry so loudly about are things they do in their own lives.
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rtx47
08:07 PM on 04/07/2011
There is much waste in federal govt (recently pointed by GAO report) and "the system." One can reduce federal budget by several means. There are nine ways to skin a cat! We've been avoiding the bullet for few decades and racking up massive debt - govt, corporate, personal.

No amount of raising revenues (taxes) reduces amount spent on healthcare which is 17% of GDP. Insurance make 30% profit; which should be cut.

Compared to other countries (spend
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rtx47
07:57 PM on 04/07/2011
USAction President William McNary, one of the most powerful voices of my generation, often reminds us that budgets are not about numbers; budgets are moral documents, a statement of our values and priorities.
----------------

Write the above on the card you leave, with your Will and Testament, along with a note to your grandchildren and yet-to-be-born Americans as to why we left them 15.5 Trillion dollar debt at the federal level, 2.4 Trillion dollar debt at the state and local govt level, and 3.5 Trillion dollar debt to unfunded pension obligations, which includes 2.6 Trillion to Social Security Trust Fund.

Of course that card that you leave them with those 'words of wisdom' will have also have our 'IOU' personal debt of 13.4 Trillion.

So you know what you can do with "one of the most powerful voices of my generation"?

Tell him like many of our generation that, "what ever he has been smoking was pretty good."
09:45 AM on 04/10/2011
McNary is likely connected to Walker and Peterson.

They talk about leaving a big debt to our children. They don't talk about how the republicans want to take away Social Security and Medicare, unemployment, medicaid and other programs.

Our children will be better off with some deficit than to lose the FDR New Deal.

Republicans want to give them a bad deal.
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Freesia2
I'm nicer than I appear in print. :-)
05:10 PM on 04/07/2011
Andrew Sullivan on his blog at the Daily Beast yesterday took great offense at Debbie's Wasserman Schultz' use of the term "death trap" feeling it was a cheap shot of sorts and no better than Palin's "death panels". (In fairness to Andrew he considers Ryan's "cause" to be essentially little but a start in the debate over fiscal house cleaning and is slowly starting to unearth all the flaws in it, not least of all that it not only didn't touch tax breaks for the wealthy but increases them and keeps its Republican hands, as usual, off any sort of defense spending cuts. Andrew's not a bad guy - just an arch conservative who tries to find some reason to believe that the Republican party still has a few credible people in it. Which it doesn't.)

At any rate I took exception to his exception over this. Where the ridiculous joke of a pol from Alaska used death panels as a stunt - Debbie nailed a reality with death trap. Taking away all of those much needed programs that you mention RIchard are in fact a death trap. If you starve and neglect - it means death. You don't build a budget and you certainly don't have a society if you have to sustain it on the backs of the most desperate of its citizens while simultaneously stroking and sating the wealthiest.

This is merely one more episode in the Republican's endless quest to undo our society so they can rebuild it on their own image. The Corporate States of America is their dream, and our national nightmare.

And Paul isn't fooling anybody except the fools with this waste of tree pulp.

You have several good ideas there. Let's make them happen. I'm an Independent, but I'm in.
03:36 PM on 04/07/2011
Although it's a nice concept to leave our children and grandchildren a debt free nation, with Ryan's proposal there won't be a nation to leave or worse, no grandchildren to leave it to. Ryan's proposal will kill off the elderly be destroying medicare, will make it almost impossible for the govt to hire anyone to work for them (he's trying to curtail the defined benefit program for 2,000,000 federal workers giving ZERO human beings a reason or an incentive to choose a civil service career) and lastly it will tax the middle-class into oblivion while giving corporations and the richest Americans even more tax breaks!

The end result! Anarchy and the self destruction of the United States. Time to go to Canada!
03:32 PM on 04/07/2011
If we keep all of these progressive spending plans, there won't be any money for Medicare or any other poor-me programs because we will be an insolvent bankrupt country without any money at all. Do you really think that the government can keep spending money at will? Someone will come for the bill sooner or later. Get real!
04:34 PM on 04/07/2011
It's very simple. Create Medicare for All so that young, healthy people are in the same 'insurance pool' as the nation's elderly - this is actually in practice in most employer provided plans NOW; the younger healthier employees provide more money to the pool than they use and the older or sicker employees get the benefit of that. When the young employees become the old employees, they will enjoy that also. So it's really no different than what private insurance does EXCEPT it is historically proven that Medicare does it for less overhead. And it's amazing how efficient an organization can be when they aren't constantly trying to create profits for shareholders.

Then, we have to give the power for Medicare to NEGOTIATE with drug companies, as the US pays 50% more for the same medicine as most of the other countries in the world, because we do not negotiate for the best deals.

I'm disappointed that you felt you had to refer to accessible health care for children and the elderly as 'poor me programs'. Your empathy for your fellow citizens is heart warming. Offer a solution, not insults.
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antmousie
07:22 PM on 04/07/2011
You think in a logical fashion. The person to whom you are replying most probably does not, but in fact repeats the talking points of blaming those outside of the top 2% wealthiest in this country, for everything that ails this country. They generally don't respond well to logic. Fanned and faved for effort though.