Earlier versions of Mr. Ryan’s plan would have capped spending at a slower rate.
If projected growth rates exceed the target, the cost control board would propose cuts. Spending could not be reduced by cutting benefits, but providers would probably be affected.
Under both the president’s plan and Mr. Ryan’s most recent plan, spending would grow at the rate of the economy, plus one-half of one percentage point.
Budget released March 2012
Mr. Ryan’s plan includes the $716 billion saved by cost-cutting under the president’s plan. “Our budget keeps that money for Medicare to extend its solvency,” he said in June. He has also said the money would help reduce the deficit.
Mr. Romney has said he would not maintain the $716 billion in savings in the 2010 law. According to a spokesman, “A Romney- Ryan administration will restore the funding to Medicare.”
Mr. Ryan’s plan would retain some cost-cutting provisions in the 2010 law, like reduced reimbursements to providers.
Earlier versions of Mr. Ryan’s plan did not offer traditional Medicare as an option.
Would move to a premium support system in which the government would contribute a fixed amount for beneficiaries based on income, age and health status to purchase traditional Medicare or private plans through new exchanges. Would repeal the 2010 health care law, including the Medicare cost control board and expanded drug coverage subsidies.
Mr. Romney has said he would restore the cuts to Medicare. Analysts say repealing the cost savings would increase expenses for beneficiaries by hundreds of dollars a year.
Mr. Romney has proposed it first rise by one month per year and later rise with life expectancy.
Would gradually rise to 67 from 65 from 2022 to 2033.
Would not affect people who are currently 55 or older.
Projected net savings of $716 billion over 10 years from the slowing of the program’s growth, which would shore up the Medicare fund for an estimated additional 8 years and go toward other parts of the health care law, like helping to cover the uninsured.
Reductions in reimbursements to providers and in subsidies for private plans
A new cost control board
Filling the drug coverage gap
Free preventive services
Incentives for efficiency
Increasing premiums for high earners
The president’s health care law maintains the fee-for-service structure in which Medicare pays medical bills for older people. Includes:
Some provisions have already gone into effect for people 65 or older.
