Romney Plan Would Bankrupt Medicare By '16
Experts say restoring reimbursements would hasten its decline
By Kevin Spak, Newser User
Posted Aug 22, 2012 7:54 AM CDT
Mitt Romney speaks during a campaign rally, Aug. 20, 2012, in Manchester NH.   (AP Photo/Evan Vucci)

(Newser) – Mitt Romney often promises to restore $716 billion in Medicare funding cut by the Affordable Care Act, but many experts say that pledge is, in the words of one economist, "both puzzling and bogus." That's because what Romney would be "restoring" wouldn't be funds but costs, the New York Times explains. The ACA cut Medicare's reimbursements to hospitals and doctors. Experts project that restoring them would send Medicare into insolvency by 2016 (rather than 2024 as currently projected), and cost seniors $342 a year in premiums and co-pays.

"Either they don't understand how the program works, which is hard to imagine, or there is some deliberate misrepresentation here," says the director of a Harvard health policy center. The Romney camp argues that cutting reimbursements means that "in the real world, the result will be fewer providers accepting Medicare payments and worse care for today's seniors." And a spokeswoman called the idea that restoring Medicare funding could speed its insolvency "absurd." Of note: Paul Ryan had the same savings in his budget plan before joining the ticket.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Your Take
5% of people agree
that it's Depressing
Check Out Another Depressing Story
You Might Like
Showing 3 of 135 comments
Aug 22, 2012 4:08 PM CDT
Kevin Spak is full of shit and so is that loser Obama...Obama Sucks!
Aug 22, 2012 3:58 PM CDT
The Romney Plan will bankrupt everyone but the top 2% by 2016.
Aug 22, 2012 1:32 PM CDT
Insurance rates follow Medicare rates. Some pay even lower than Medicare. If the Medicare payments to health providers are reduced so will the insurance rates be reduced. It's a hard fact, but health providers these days have to take what the insurance/Medicare will bear. Truth to tell, medical costs are hugely inflated and then due to the way reimbursement is handled, many extra procedures than people need are done and billed for as a regular thing.