The Ryan Plan (also Republican) plan for Medicare for folks less than age 55 that the yearly voucher "Premium support" for Medicare is set at the current years expenses per Medicare enrollee or about $8,000 and will increase each year whatever Percent the GDP increases plus 1%.
The average increase in GDP has been slightly less than 3 % over the last 30 years thus assuming the GDP grows at the 30 year average the Voucher or "premium support" as the Republicans prefer it to be called would be $12,412.57 when the 54 year old first becomes eligible for Medicare (by the way the money will not go to the enrollee but directly from the government to the insurance company).

As everyone who has any knowledge on the situation should know ( if they are not a Faux devotee) that Medical costs have historical increased at a much higher pace than the GDP + 1 percent that the plan allows. Historically Medical Care has been increasing at about 9% per year.
So what will the 54 year old have to pay the first year he is eligible for Medicare (assuming the insurance company's administration,overhead and profits cost will be no higher than Medicare's)

The Enrollee cost if Medical cost bucks the historical trend and by some miracle only increases at 5% per year the enrollee cost the first year would be would be $1,437.62.

If the 54 year old is fortunate enough to live to age 75 his/her yearly cost would be $4.304.32.
If the 54 year old is fortunate enough to live to age 85 his/her yearly cost would be $9982.62.
If by some miracle Medical cost buck the 9% historical trend and only increase 6% per year the same enrollee first years cost would be $3,040.34.
At age 75 the enrollee cost per year would be $9,609.90
At age 85 the enrollee cost per year would be $23,564.32

The enrollee cost the first year if Medical cost bucks the historical average and grows at a 7.5% per year cost instead of the historical 8% to 9% would be $5,795.67 which is what the CBO estimates and also the cost that Obama quotes when he rounds off the amount to $6,000.
Using this estimate of the rise in medical cost (which I suspect is closer to right) the 55 year old would be paying $26,044.40 at age 75 and keep in mind that this is per person/ double it for a married couple.
The fact that the congress people (all but 4 Republicans) (and all of Tennessee's GOP) and all the tee party people voted for this cruel and inhumane plan should give pause and reflection to everyone except the most heartless or stupid among us.

Comments

regrub 3 years 35 weeks ago
#1

I forgot to add that I posted this on the Knoxville News Sentinel Blog at:

http://www.knoxnews.com/news/2011/apr/15/letters-health-care-law-has-done-nothing/

http://www.knoxnews.com/news/2011/apr/16/obama-says-debt-limit-will-be-raised/

The T Boys/Girls here in Tennesse were busily posting their ridiculous Faux News and Talk Radio induced arguments and cute little Bumper Sticker Slogans on the on the thread, after I posted my comment they started to avoid the thread as if it is the plague. They so far (36 hours) have refused to acknowledge it despite several attempts by me to get them to engage in debate with me on the plan.

I have even posted a cute little poem insulting them and still nothing on that thread except cricket chirping.Please fell free to copy and paste it on other threads and see if you get the same results. I think the greatest and funniest thing about Obama's Presidency is the what I call OIDS (Obama Induced Syndrome) the T Potty/Republicans, most of them former Dixiecrats have been infected with.

Add comment

Login or register to post comments

Currently Chatting

The Death of the Middle Class was by Design...

Even in the face of the so-called Recovery, poverty and inequality are getting worse in our country, and more wealth and power is flowing straight to the top. According to Paul Buchheit over at Alternet, this is the end result of winner-take-all capitalism, and this destruction of the working class has all been by design.