The Republicans want to change Medicare from it’s current defined benefit formula to a voucher system. In this plan U.S citizens who are 54 years old and younger will receive $8,000 dollars from the federal government (see your tax dollars). This voucher is tied to core inflation (CPI) rather than healthcare index, which is rising faster than the consumer price index. So over the course of your retirement years, your voucher will buy less and less care.
There is also something I found very disturbing with this Medicare voucher. Not only is this a give a way to private health insurance companies, this is a way for our own federal government to fund campaigns against any further health insurance reform. The Citizens United Supreme Court decision ruled that corporations can now use general funds to promote or attack politicians. Corporations will now be able to use their profits to promote an agenda that solely benefits themselves and their bottom line.
Taking this into consideration, the $8,000 dollar Medicare voucher that Paul Ryan and the Republicans want to give our elderly will go directly to health insurance companies and increase their profits. These same companies that have recently fought ferociously against the current health insurance reform law will now be using our tax dollars to attack or promote candidates that enhance their interests.
Under this Republican plan, your payroll tax will not go down. You will continue to pay your 1.45% and your employer will continue their half of the contribution. So if you earn 100K a year you will pay $1,445 dollars and your employer matches it for a total of $2,890 a year. But instead of your contribution going to pay for your medical care directly as it does under the current system, it will go into a voucher and funneled to a private insurance company.
This is privatization of our social contract with our elderly and a way for politicians that oppose health insurance reform to raid our treasury by having these companies run ads that either attack their opponent or support the candidate that will side with the health insurance industry. Welcome to the end of democracy as we know it.