–Four Conservative Republicans Propose Big Changes To Key Program
–Senators Say Plan Would Generate $1T in Ten Year Savings
–House Budget Committee Chairman To Offer His Budget Next Week

By John Shaw

WASHINGTON (MNI) – Four conservative Senate Republicans offered a
sweeping Medicare reform proposal Thursday that would substantially
overhaul the program, gradually increasing its eligibility age and
requiring wealthier seniors to pay more of the costs of the program.

According to the GOP senators, the package would generate about $1
trillion in 10 year savings.

The package was introduced by Republican senators Jim DeMint of
South Carolina, Lindsey Graham of South Carolina, Rand Paul of Kentucky,
and Mike Lee of Utah.

The bill would phase out the current Medicare program eventually.

The legislation is unlikely to advance in the Senate this year, but
it shows that at least some lawmakers are willing to offer proposals
that would substantially change the popular program that provides health
insurance to almost 50 million seniors.

All eyes in Washington will turn next week to House Budget
Committee Chairman Paul Ryan who will present his fiscal year 2013
budget resolution Tuesday.

Ryan is likely to revive the main elements of the budget resolution
that he pushed through the House last April.

That plan called for extending the Bush era tax cuts and making
deep cuts in the projected growth of federal spending. It called for the
overhaul of Medicare so that future recipients are given fixed subsidies
to buy coverage rather than the current fee for service program. He also
proposed overhauling Medicaid so that it becomes a block grant system in
which states would receive a set amount of funds from the federal
government.

Ryan’s budget outline also endorsed sweeping major tax reform in
which the top individual and corporate rates would be reduced from 35%
to 25%.

However, Ryan is expected to pull back from his previous proposal
to change Medicare into a program in which seniors receive government
payments to purchase private health insurance plans beginning in 2022.

Ryan has been working with Democratic Senator Ron Wyden on a
Medicare proposal that would allow seniors to choose between the
traditional Medicare program and purchasing private plans with the help
of government vouchers.

Ryan and House Republicans were scorched by Democrats last year for
their Medicare proposal and Ryan has signalled that he will proceed more
carefully on Medicare reform this spring.

** MNI Washington Bureau: (202) 371-2121 **

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