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-- joining me is Maryland congressman Chris van Holland chairman of the Democratic Congressional Campaign Committee and ranking member of the Budget Committee.
Congressman thanks for being here great to be with you -- you have the -- Well thank you and it's great to be here with you to discuss the future of Medicare which I think as we know how provides health and income security to millions.
An American seniors and the Medicare debate of course is taking part in the context of a larger debate over the budget about our priorities and values so want to make it clear at the beginning.
That we believe we have to reduce the deficit in a steady and predictable way the question is how do we do it.
And to govern is to choose and we think the choices made in the Republican budget.
On Medicare and other points are wrong for American we think we have a better alternative so wanna talk you about.
Both those things first with respect to the choices in the Republican budget.
They choose to end the Medicare guarantee but they don't get rid of the big subsidies for oil companies and other corporations that exploit.
Loopholes in our tax code and many of whom pay actually no income tax.
And with respect to Medicare they do two things one.
Increase the exposure of seniors to rising prescription drug costs -- Because they eliminate our effort to close the prescription drug don't know what happens right away second they end the Medicare guarantee.
And they force seniors into the private insurance market where seniors will face rapidly rising health care cost with a lot less support.
From the government.
It's a great deal for the insurance industry will be bonanza for them but it's a lousy deal for America's seniors and here's why.
The -- in the private insurance market.
On -- per capita basis have been rising faster.
Then the cost in Medicare that's according to the most recent Medicare trustees' report.
And it's confirmed by the CMS senators senators for Medicaid and Medicare services.
And what this chart shows is that in the private insurance market the per capita cost.
It each year between 2000 to 2009 and -- going up at six point 7%.
-- -- in Medicare it's four point 6%.
And we all know that people been in the private market buying private health insurance because between the year 2002010.
We saw premiums more than double.
As insurance profits insurance company profits for the top five more than.
And that is a very bad place to be putting seniors especially when at the same time you're -- to give them they're relatively declining.
Value when -- -- voucher -- -- I don't care the reality is it doesn't begin to keep pace with the the rising cost.
And that's what the nonpartisan CBO vindicated and what they showed was that in the year 20/20.
Under the Republican budget because of the higher cost in the private market.
And west's support for Medicare seniors will pay an additional 6350.
And it gets worse and worse as time goes on because the -- keep going up and the relative support.
From Medicare through them the voucher premium support goes down so here's what happens in the year.
-- thirty and in that year again according to nonpartisan Congressional Budget Office -- so pay over 111000 dollars more now keep in mind that right now.
Right now the median income.
For a Medicare beneficiary.
Is under 21.
Thousand dollars -- -- asking you -- either eat these higher cost war they're gonna have to take a much lower benefit package without the health protections.
This at the same time that that budget.
Said we're gonna cut the top income tax rate for millionaires by 30%.
So that's why Newt Gingrich got a right the first time when he said this was a clear radical plan and right wing social engineering and that's why there's a better way.
A better way forward.
Which is to continue to implement the reforms we began in the Affordable Care Act and I'd be happy to discuss those with you -- can continue presentation.
-- never sure go ahead it because that's the question the most Republicans have when they -- all of the press presentations in the attacks on the Republican plan.
He's what specifically is the democratic plan to deal was something that even Democrat.
-- economist Alice Rivlin says is unsustainable.
Well there's no doubt that we have -- a challenge and Medicare going forward and that's why in the Affordable Care Act the reform act that we passed.
We begin to put in place mechanisms first of -- reduce the cost of health care -- how the system because Medicare is a player in that larger system we wanna reduce the cost.
We also made some reforms in Medicare.
We ended the overpayments.
To the private plans and Medicare Advantage plans there are private plans in Medicare about 25% of Medicare beneficiaries.
But they have actually not been more.
Cost effective we -- eliminate the subsidy there are additional things we need to do for example when the prescription drug bill was passed.
There's no reason they -- broke right in law that the government could not negotiating.
Drug prices like the veterans administration did a lot of lobbyists pushed in the pharmaceutical industry push -- that but there's -- reason let me just say this.
This is a statement from the Medicare trustees' report the most recent.
The financial outlook for the Medicare program is substantially improved as a result of the changes in the Affordable Care Act.
-- if you look at this chart prepared by the I trustees they show that as a result of the Affordable Care Act in the changes if implemented fully.
Will significantly bend the cost curve so.
Yeah actually say what's what what you have short this is what it -- -- not not for our justice.
That what what you have in the affordable care actually is a series of steps that will be be taken over a period of time that are just beginning you were reading the papers now.
About accountable care organizations.
The idea is to modernize the Medicare system.
Quality of care over quantity care to make sure you get.
Value not volume and drive down the cost on top of that as I indicated there are things you can do.
To strengthen the the Medicare program -- bargaining position.
With the pharmaceutical industry.
Before people on Medicaid we -- we paid a lower.
Drug prices when they became what we -- dual eligible Medicaid and Medicare win -- a pain.
More there's no reason to do that that saves right there -- tens of billions of dollars.
Better coordination of care so there are lots of things that are going to be done.
As part of the inflammation implementation of the -- care act but also additional things that we can do to bring down costs congressman stay around if you would for the head to head debate.
I appreciate it thank you.
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