Paul Ryan on Health Care

Paul Ryan had an Op-ed in the WSJ outlining a platform for reform on multiple issues but some of the more interesting elements are in health care. As the president reaches for some kind of compromise on health care, or decides to ram through the Senate plan through the house, I think Ryan's ideas offer a lot of merit whether you are from the right or the left. Why not rach out for compromise here? Essentially this gives each individual $2,300 and each family $5,700 to spend as they see fit on health care. Full piece here- see below:

The plan ensures universal access to affordable health insurance by restructuring the tax code, allowing all Americans to secure an affordable health plan that best suits their needs, and shifting the control and ownership of health coverage away from the government and employers to individuals.

It provides a refundable tax credit—$2,300 for individuals and $5,700 for families—to purchase coverage (from another state if they so choose) and keep it with them if they move or change jobs. It establishes transparency in health-care price and quality data, so this critical information is readily available before someone needs health services.

State-based high risk pools will make affordable care available to those with pre-existing conditions. In addition to the tax credit, Medicaid will provide supplemental payments to low-income recipients so they too can obtain the health coverage of their choice and no longer be consigned to the stigmatized, sclerotic care that Medicaid has come to represent.

Some thoughts?:

• This amount comes up short in terms of what a health plan probably costs, however it's a great start and would get most all American's preventive care and a good chunk of emergency care covered. I'd like to see some sort of savings component so that if you take care of yourself, have great health habits, you save this money in case of an emergency.
• This "floor" would end up creating more efficiency in the health care system as health care companies work to reach these limits with more efficient programs.It reminds me of the Swiss system which gives each citizen a set amount to buy private insurance.
• The biggest negative? You can't really have a private health care system if the medicare system is still intact (the two systems feed on each other as excess costs are passed from one to the other).

However, Mr. Ryan addresses that with an idea for Medicare reform. It's a good start:

• Medicare. The Road Map secures Medicare for current beneficiaries, while making common-sense reforms to save this critical program. It preserves the existing Medicare program for Americans currently 55 or older so they can receive the benefits they planned for throughout their working lives.

For those under 55—as they become Medicare-eligible—it creates a Medicare payment, initially averaging $11,000, to be used to purchase a Medicare certified plan. The payment is adjusted to reflect medical inflation, and pegged to income, with low-income individuals receiving greater support. The plan also provides risk adjustment, so those with greater medical needs receive a higher payment.

The proposal also fully funds Medical Savings Accounts (MSAs) for low-income beneficiaries, while continuing to allow all beneficiaries, regardless of income, to set up tax-free MSAs. Enacted together, these reforms will help keep Medicare solvent for generations to come.