Paul Ryan's Plan to Radically Reshape Healthcare

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    Sep 27, 2011 8:12 PM GMT
    A plan that makes a lot of sense - shifting the onus of buying healthcare away from companies and managers and instead putting the onus of responsibility on individuals.

    http://finance.fortune.cnn.com/2011/09/27/paul-ryan-healthcare/

    In the Stanford speech, Ryan states: "Under current law, employer-sponsored insurance plans are entirely exempt from taxation, regardless of how much an individual contributes to their policy. With regard for health insurance for working Americans, patient-centered reform means replacing the inefficient treatment of employer-provided care."

    Ryan argues that the tax laws make it far cheaper for a corporation to purchase coverage for workers than for the worker to buy a similar policy on their own. He's correct. For example, ABK Auto Parts (a hypothetical employer) can provide a worker with a $50,000 salary with a $15,000 family policy without including that $15,000 in the worker's compensation, so the benefit is tax-free to the employee. Under the current tax regime, if the company simply increased the worker's salary by $15,000 to $65,000, he or she would have to pay tax on that extra income -- say at a 25% rate, including payroll levies. Hence, the worker would be to buy only an $11,250 policy with the extra pay. "This tilts the compensation scale toward benefits, which are tax-free, and away from wages, which are taxable," the speech says.

    He also argues that the system is especially helpful to the "rich:" "It also provides ways for high-income earners to artificially reduce their tax-able income by purchasing high-cost health coverage -- which in turn can fuel the overuse of health services."

    So what's Ryan's solution? He proposes shifting the tax exemption that now goes only to company-provided plans to individuals instead. In our example, if ABK Auto Parts keeps providing coverage, employees will need to pay tax on the value of the policies. But the employee will be able to buy a policy on their own and get a tax credit for the entire cost of the plan.

    If Ryan's plan becomes law, it's likely that most companies would drop their plans. Why provide coverage when employees now pay tax on the benefit but get a tax credit if they buy their own plans? The advantage is that employees would no longer lose their coverage if they lose their jobs. The policies would belong to them and be fully portable to the next job. It would also turn workers into consumers, giving them an incentive to shop for the lowest cost plans with their own money.
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    Sep 27, 2011 8:26 PM GMT
    I'll support it if it also includes a Medicare buy-in.
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    Sep 27, 2011 8:34 PM GMT
    This just seems like a bad idea, your health isn't something you should have to weigh on a scale of cost V.S. effectiveness.

    What will his plan do to stop discriminatory "pre-existing condition" practices? How exactly will his plan deal with insurance companies claiming to cover something and then giving you a hard time about it when it's time to pay? What about long term care patients? What if insurance companies don't provide options/ offer options at ridiculously inflated prices?
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    Sep 27, 2011 8:51 PM GMT
    What happened to his plan to privatize Medicare and Social Security in order to pay for tax cuts for the rich (AKA - the Ryan budget bill that almost every single Repub in Congress voted for)?
    http://www.politifact.com/truth-o-meter/statements/2011/may/25/agenda-project/throw-granny-cliff-ad-says-paul-ryan-plan-would-pr/

    Has Ryan flip-flopped?
    Flip-floppery seems to be running rampant through the Repub party!
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    Sep 27, 2011 9:00 PM GMT
    Not surprising that it makes a lot of sense, coming from someone who actually cares about coming up with a plan!
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    Sep 27, 2011 9:01 PM GMT
    RickRick91 saidWhat happened to his plan to privatize Medicare and Social Security in order to pay for tax cuts for the rich (AKA - the Ryan budget bill that almost every single Repub in Congress voted for)?
    http://www.politifact.com/truth-o-meter/statements/2011/may/25/agenda-project/throw-granny-cliff-ad-says-paul-ryan-plan-would-pr/

    Has Ryan flip-flopped?
    Flip-floppery seems to be running rampant through the Repub party!


    Nope, you just never understood it to begin with since you only listen to alarmist propaganda -- as I already said in a previous thread.
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    Sep 27, 2011 9:09 PM GMT
    mocktwinkie said
    RickRick91 saidWhat happened to his plan to privatize Medicare and Social Security in order to pay for tax cuts for the rich (AKA - the Ryan budget bill that almost every single Repub in Congress voted for)?
    http://www.politifact.com/truth-o-meter/statements/2011/may/25/agenda-project/throw-granny-cliff-ad-says-paul-ryan-plan-would-pr/

    Has Ryan flip-flopped?
    Flip-floppery seems to be running rampant through the Repub party!


    Nope, you just never understood it to begin with since you only listen to alarmist propaganda -- as I already said in a previous thread.





    LOL!
    Politifact is not "alarmist propaganda".

    And given the fact that in the "previous thread" you mention - you cited a link to a POLITIFACT article - you know that Politifact is not "alarmist propaganda".

    In fact - here is a link to the thread YOU posted citing Politfact info.

    http://www.realjock.com/gayforums/1799115/

    And - AGAIN - here is the Politifact info which finds that the Ryan plan WOULD privatize Medicare.
    http://www.politifact.com/truth-o-meter/statements/2011/may/25/agenda-project/throw-granny-cliff-ad-says-paul-ryan-plan-would-pr/