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Rick Moran


March 10, 2013 - 11:10 am

Ryan believes that he can save $770 billion over 10 years if Obamacare is repealed. All those Obamacare tax increases would be repealed too, and his proposal includes sending Medicaid block grants to states. This begs the question of where Ryan finds all those savings? Especially since without mandated insurance, there are still going to be millions of people uncovered.

The uninsured aren’t going to just disappear, and there are at least 20 million of them. And they get sick. When they can’t pay the bill, government has to step in and pay it anyway.

Still, Ryan’s point is valid.


Rolling back President Obama’s controversial healthcare reform plan remains a key to balancing the U.S. budget, Rep. Paul Ryan, R-Wisc., said Sunday.

Ryan, the unsuccessful Republican candidate for vice president in 2012, said on “Fox News Sunday” he was particularly disturbed about Obama’s strategy of qualifying millions of people for Medicare coverage.

“We think the ‘Obamacare’ expansion of Medicare is reckless,” said Ryan. “We are pushing people, 20 million people, into a program that’s failing. More and more doctors and hospitals don’t even take the program.”

Ryan, a leading congressional budget hawk, told Fox the GOP preferred to see individual states get more freedom to customize their Medicaid programs for low-income residents. He contended his plan would result in huge savings by blocking an equally huge expansion of entitlements.

“We want to give states … the tools they need to make these benefits work for their populations and we don’t want to push more people into a failing program,” Ryan said. “By not pushing people into this failing program, we do save those kinds of dollars.”

The Medicaid expansion should have been phased in over several years — if at all. It is a classic illustration of what is wrong with the Affordable Care Act; it tries to do too much, too soon, with the consequences poorly thought out and foreseen.

Paul is absolutely right that placing millions of people in a program already broken is going to lead to catastrophe. That goes double for pushing people on to the state exchanges that will only add to the confusion. But it’s still a question of how much savings will be realized if Obamacare is repealed.

That’s why Ryan’s budget proposal seeks to slow the increase in government spending from 4.9% a year under Obama to 3.4%.

Ryan, the Republican vice presidential nominee in 2012, said the extra $600 billion in new tax revenue that Congress agreed to in January will help achieve a balanced budget in 10 years.

“Instead of growing spending at 4.9 percent” annually, “we grow spending 3.4 percent” so “the result is a $5 trillion” cut in the increase of spending over 10 years, he said.

Ryan’s plan assumes that the Democratic-controlled Senate joins the Republican-run House in repealing the health-care law that is set to be implemented next year. Ryan said the plan would take money designated for expanding Medicaid, to provide more insurance to low-income people, and give it to states as block grants to provide coverage themselves. That would save $770 billion in 10 years, he said.

“By repealing Obamacare and Medicaid expansions that have not yet occurred, we are preventing the explosion of a program that is already failing,” Ryan said.
Expansion’s Cost

Under the health-care law, the expanded Medicaid program would include people with incomes of as much as 130 percent of poverty. The federal government would pay the entire cost of the expansion until 2017; after that, states would become responsible for the first 10 percent of added cost.

Some states with Republican governors or legislatures have balked at agreeing to the expansion of the Medicaid program, which is financed by state and federal funds.

The House wants to “give the states the tools they are asking for” to create programs to “make these benefits work for their populations,” Ryan said.

Additional savings from repealing the health-care law would be used to shore up the Medicare trust fund, to extend its solvency past 2024.

“Obamacare does damage to Medicare,” Ryan said. “It is going damage to the current program for seniors.”
Age 55

Ryan said his budget, like his plan last year, would propose giving new Medicare beneficiaries, now younger than age 55, the option of purchasing private insurance with a government subsidy instead of the traditional Medicare plan.

“Let’s convert Medicare into a system like the one I have as a congressman” that provides a variety of “guaranteed coverage options,” he said.

One and a half percent per year doesn’t seem like much but when you consider cost of living increases for many federal programs (unless that formula is changed as some are advocating), the cut in the rate of spending will fall on fewer programs, thus concentrating the pain.

And make no mistake, pain there will be. America has been on a 40 year binge and getting back to fiscal sanity is going to entail sacrifice. Shrinking government is not going to be easy but there’s really no alternative if we are ever going to balance the budget and begin to address the massive debt we’ve foolishly acquired.

Rick Moran is PJ Media's Chicago editor and Blog editor at The American Thinker. He is also host of the"RINO Hour of Power" on Blog Talk Radio. His own blog is Right Wing Nut House.

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Doctors in private practice Medicare compensation will be reduced by 15%. And compensation will be longer (Medical Panels, you know). So, We The People are losing Private practice doctors!!Anybody else being affected with job losses??And how's about those 21 new tax increases being implemented! More "revenue" for government. Say. doesn't this reduce the 2.23% "Sequester" everybody's screaming about???HUH!!!!
On the flip side, there's this sad note from The Foundry(reprinted):
10 Stories of Job Loss as Consequences of Obamacare
Alyene Senger March 11, 2013 at 5:41 am(The Foundry)
As employers and businesses prepare for Obamacare’s sweeping changes and mandates to begin in 2014, many are already laying off some of their employees. An event at Heritage today will discuss the burdens of the law both for small businesses’ ability to hire and grow and individuals’ ability to find jobs. Here are 10 examples of job loss due in whole or part to Obamacare and its consequences:
Medical Device Tax
1.1,000 jobs lost: “Stryker Corporation Confirms Obamacare Layoffs.”
2.275 jobs lost: “Medical Device Tax Blamed for Welch Allyn Layoffs.”
3.100 jobs lost: “Latest Obamacare Casualty: 100 Workers at Smith and Nephew.”
The 2.3 percent excise tax on the sale of medical devices, one of the 18 tax hikes in Obamacare, is estimated to cost the industry over $29 billion between 2013 and 2022. Many employers in the industry are compensating for the tax hike by reducing their labor costs.
Medicare Payment Cuts
4.950 jobs lost: “Wake Forest Baptist Medical Center Reengineers Cost Structure, Eliminate Positions.”
5.Up to 400 jobs lost: “Orlando Health to Cut Record Number of Jobs to Save Money.”
6.52 Jobs lost: “Delaware Hospice Lays Off 52 Workers amid Federal Changes.”
7.58 jobs lost: “Hospital Layoffs and the Affordable Hea[l]th Care Act.”
Obamacare reduces Medicare spending by $716 billion from 2013 to 2022, with a majority of the payment reductions hitting Medicare Part A providers, which includes hospitals, hospices, skilled nursing facilities, and nursing homes. As these providers are trying to do more with less federal reimbursement, they are laying off their employees to cut down costs.
If Obamacare’s rates remain law, the Medicare trustees predict, “the lower Medicare payment rates would result in negative total facility margins for an estimated 15 percent of hospitals, skilled nursing facilities, and home health agencies by 2019, and this percentage would reach roughly 25 percent in 2030 and 40 percent by 2050.” The payment cuts are simply not sustainable.
Employer Mandate
8.At least 7,386 full-time jobs turned part-time: “State Grapples with Insurance Rules for Part-Time Workers.”
9.400 full-time jobs turned part-time: “Health Care Law Brings Double Dose of Trouble for CCAC Part-Time Profs.”
10.300 full-time jobs turned part-time: “Wendy’s Franchisee Slashes Employee Hours to Sidestep Obamacare.”
Obamacare’s employer mandate forces all employers with more than 50 full-time employees, defined as those who work at least 30 hours per week, to provide health insurance for employees or pay a $2,000 penalty for each employee after the first 30 workers. This creates an incentive for businesses to avoid both the penalty and cost of coverage by hiring part-time employees instead of full-time employees, since businesses will not be penalized for failing to provide health insurance to part-time employees. This affects a wide range of American workers, from restaurant employees and college adjunct professors to state government workers.
American workers already can’t afford the high price of Obamacare, and it’s just the beginning: The most egregious parts of the law don’t begin until 2014.
(comment: an estimated 53% doctors in private practice have closed their doors, retired, left private practice, joined HMO's, Hospitals, or moved to other industries). Want to see Obamacare in action? Go to any VA Hospital in any city in the USA. Especially, if a Vet has a health issue other than a common cold. One defies anyone to say this isn't where Obamacare is going. Pray. Amen. This is "sequester" in action. COB has it's work cut out!!!!
1 year ago
1 year ago Link To Comment
It's too bad he's still a Republican. Time to move on. Those days are over.
1 year ago
1 year ago Link To Comment
The uninsured is absolutely wrong to be talking about. One can "give" everybody Medicaid. It is horribly inefficient. A community health center can provide care for a year for the cost of one or two ER visits. Talk about the medical safety net. Give people catastrophic insurance and a free pass to the community health center.

There will be many uninsured under Obamacare - much more than what people are predicting. Why? Because it is easier to game Obamacare than Romneycare. Young people, if they have sense, will pay the fine and wait to get insurance if they have need for it.
1 year ago
1 year ago Link To Comment
20 million uninsured before, but how many of those were uninsured because they chose to be? Now, under Obamacare, how many will be uninsured because their employers will drop them and they won't be able to afford the minimum coverage even with subsidy and will opt for the penalty instead because it's less?

There are studies suggesting that number will be more than just 20 million, and they won't be uninsured because they chose to be but because they have no option.
1 year ago
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