Another Shocking Headline

LA Times-CBO says Republican Rep. Ryan's Medicare privatization plan would increase costs:

When House Budget Committee Chairman Paul D. Ryan unveiled his blueprint this week for cutting federal spending by $5.8 trillion over the next decade, he argued that a revamping of the government's health safety net would rein in skyrocketing costs.

But because commercial insurers cost more to run than government plans, the Wisconsin Republican's proposal to privatize Medicare starting in 2022 would actually spark a dramatic increase in how much the nation spends on healthcare for the elderly, according to an independent analysis by the nonpartisan Congressional Budget Office.

Even as the federal government cut its own spending, seniors would end up paying almost twice as much out of their own pockets — or more than $12,510 a year, the CBO estimates. Altogether, the total cost of insurance would be higher.

Ryan's office did not respond to repeated requests for comment about the CBO analysis. But the congressman has repeatedly said that applying what he calls "free-market principles" to the insurance market is the best way to control costs.

I can't believe the private market wouldn't save seniors money.  Actually, I would be surprised if private health insurers would touch insuring old people with a ten-foot pole, unless they had a guarantee of federal backing on any costs over a certain amount.  Good luck finding insurance when you are 80.