AARP: GOP Plan To Convert Medicare From “Defined Benefit” To “Defined Contribution” Program

As news of Republican Speaker of the House Paul Ryan’s proposed conversion of Medicare from a “Defined Benefit” to a “Defined Contribution” program spreads, it is stirring fears among the 57 million beneficiaries who rely on it to cover prescription drugs, doctor visits and hospitalizations. Democrats and consumer groups, including AARP, have pledged their opposition Ryan's plan.

Ironically, Ryan is proposing to convert Medicare into the very system he is rushing to repeal — the Affordable Care Act (“ACA” or “Obamacare”) — but without its protections, such as the requirement that private insurers cover those with pre-existing conditions.

Ryan claims that the ACA must be killed quickly because “we have to bring relief as fast as possible to people who are struggling under Obamacare.” Out of one side of his mouth, he asserts that young, healthy Americans are struggling to buy private health insurance, even though the government provides them with subsidies to help with the cost and requires that they can’t be turned down because of pre-existing conditions. Out of the other side of his mouth, Ryan claims that seniors and people with disabilities will be just fine with a government provided subsidy in the form of a voucher, and no other protection!

In a special report, AARP details what the state of Medicare is today and provides what you need to know about the upcoming debate in Washington over the nation’s most important health care program:

A Battle Looms by Bill Walsh