Misinformation on Medicare Reform

Published June 7, 2011 12:54pm ET



A recent National Journal article misrepresents the effects of the proposed Medicare reforms in the House of Representatives on current seniors. House Budget Committee chairman Paul Ryan has repeatedly noted that these proposed Medicare reforms — which would not go into effect until 2022 — would not affect anyone who is currently at least 55 years of age, let alone current seniors. Tim Fernholz, however, asserts in the National Journal that the “plan to grandfather traditional Medicare for those older than 55” could “have negative consequences for current seniors.” He writes:

“In 2022, when the limited-subsidy program would be introduced, seniors who qualified for traditional Medicare would be allowed to switch to the new program. If healthier or younger beneficiaries make the change to lower their out-of-pocket costs, those still participating in Medicare would be part of an insurance pool that is less healthy and more expensive. To cover those higher per-person costs, Medicare might well be forced to either raise premiums or limit reimbursements to health care providers — which could prompt many to stop taking Medicare patients.” 

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