Mitt Romney’s tax and jobs policies have seen extensive examinations in recent days. In the debates and elsewhere, there have been lively exchanges on the Romney/Ryan plan to have insurance exchanges and premium support for Medicare.
But to my astonishment, the debates and analyses of the Medicare plan ignore or gloss over a key element of the Romney/Ryan position, one that puts every other promise about government spending, deficits and the present and future of the Medicare program into code blue.
The key element of the plan is that benefits in the Medicare program and its fundamental structure will not be touched for 10 years. Here are the key, and related, promises made by the governor and his running mate: Not one dime of benefits for current Medicare recipients, or those over 55 today, will be touched; changes in the program, moving to premium support with competition for insurance in exchanges, will not start for 10 years. Not one dime of the $716 billion cut from the Medicare program by President Barack Obama and Congress as part of the 2010 overhaul will be cut.
And the Romney/Ryan administration will move much more swiftly and effectively to reduce America’s debt and move the budget toward balance, while pledging to cap all federal spending at 20 percent of the gross domestic product.
Many commentators, including the New York Times’ David Brooks, have endorsed the Romney/Ryan Medicare plan over the approach of the Obama administration, underscoring that our long-term debt problem cannot be tackled without tackling entitlements, starting with Medicare, and reducing their growth path, and that the premium support approach, with its competition, is the right way to go.
There is much to commend the idea of premium support — but what happens if Romney/Ryan does not even begin the reform or move in any way to address the growth of Medicare for 10 years? In the meantime, without contemporary changes, the Centers for Medicare and Medicaid Services projects that Medicare will grow an average of 6.3 percent a year over the next decade, and Medicare as a share of the GDP will grow by about a third, to more than 6 percent alone.
All government spending on health, without major change, is projected to grow to 50 percent of all health spending in the country, or to 10 percent of the GDP — accounting for half of all government under Romney/Ryan, with the rest divided among defense, interest and everything else. With a concomitant promise to put a floor under defense of 4 percent of GDP, that means, according to the Center for Budget and Policy Priorities, a cut for all programs other than Social Security and defense, by 32 percent by 2016 and 53 percent by 2022.
Waiting 10 years before tackling Medicare, meaning much larger deficits, is what prompted Ryan to include in his budget the full $716 billion in cutbacks in Medicare outlays over the coming decade, a sum that was necessary to enable him to project a balanced budget by the mid-2030s.
Each year since 1990, CQ Roll Call has reviewed the financial disclosures of all 541 senators, representatives and delegates to determine the 50 richest members of Congress. This year's report, derived from forms covering the calendar year 2012, shows it took a net worth of $6.67 million to crack the exclusive club.