Rep. Paul Ryan's New Fix for Medicare

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Back in Washington there is a new plan emerging to fix Medicare it comes from the same lawmaker who came up with another proposal earlier this year.

However chief -- correspondent Jim Angle reports this time.

He has enough.

Republican Paul Ryan joined forces to a democratic senator Ron Wyden on a new Medicare proposal that will affect both the 212 election and the cause of entitlement reform because it preserve traditional Medicare as a choice for seniors but that's still does.

Is it in beds for all time.

A program that.

Progressives.

Have felt very strongly about and that is tradition -- -- Medicare.

Will always be part.

Of this program.

Which means Democrats can no longer accuse Ryan of trying to destroy Medicare instead -- and -- claim to be -- by offering competition is for the beneficiary gets to make the choice.

And the providers insurers whomever.

Compete against each other for that person's business what ends up resulting.

Are lower costs and higher quality the new plan would give seniors a subsidy known as premium support -- either traditional Medicare coverage or a private sector plan.

The subsidy would be set to match the second lowest bidder so seniors would always be guaranteed at least two health plans at no cost to make sure that if costs -- -- didn't go off.

Just didn't automatically -- -- -- -- seniors.

The original Ryan plan was not going to -- traditional Medicare is a choice which drew fire from the labs and from Newt Gingrich whose remarks are now part of Iran he had the I don't think right wing social engine.

-- -- -- -- Well yeah.

Gingrich turned his fire on Romney -- a -- interview accusing him of supporting the original Ryan plan.

-- what you're suggesting is a mandatory.

Premium support plan including people currently under Medicare -- -- about and politically impossible proposed.

In fact that he is not Romney's proposal he has -- -- but always supported giving traditional Medicare as one of the options.

I which Gingrich does as well.

Gingrich is.

-- one change to the -- Ryan plan was that he wanted to be a voluntary choice by each individual senior citizen cannot imposed on them.

Romney's plan is closer to the Ryan proposal because he'd put a limit on the growth of Medicare which has 36 trillion in unfunded promises.

The Republican and democratic plans also -- Medicare spending.

To -- -- slow the growth of spending within the traditional Medicare system.

Nobody's going to get out of it nobody's going to choose -- more efficient market based alternatives.

So simply offering choice does not solve your problem.

Do we don't have any provision that's right now for any cuts in the Medicare but that's because we think everyone will choose that private market alternatives like -- security.

And if they don't -- and it won't work so this is based on the assumption that people make the choice.

So the Gingrich and Romney plans are similar but by doing nothing to control spending in Medicare the Gingrich plan takes the bigger risk.

Jim thank you.

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Rep. Paul Ryan's New Fix for Medicare

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