As a voter who appreciates the benefits of Social Security and Medicare, I took note of an article in the conservative magazine, The Economist (April 21-27, 2012), regarding presidential contender Mitt Romney, that stated, “He has also embraced [Republican Congressman Paul] Ryan’s proposal that, starting in 2022, new Medicare beneficiaries should receive a voucher for a private plan. They could instead choose traditional Medicare, but its value would be capped at that of the voucher.”
Critics are pointing out that the voucher or its value may not be adequate to treat patients; what if the insurance or treatment costs more? According to The Economist, Romney would have trouble backing away from this plan because it is Mr. Ryan and not Mr. Romney who guides the party’s agenda. The Economist states, “As Grover Norquist, an anti-tax campaigner, puts it, ‘We don’t need a president to tell us in what direction to go. We know what direction to go. We want the Ryan budget. We … just need a president to sign this stuff.’”
For those of us who care about saving Social Security and Medicare, the above proposal is alarming. Studies have shown that the systems can be saved simply by raising the cap on the amount that is subject to the payroll tax. Right now the cap is $110,100 in salary, above which the tax does not apply. It’s been many years since the cap was last raised. We also must avoid means testing for these benefits. That would be the death of them as they would no longer have wide support. All should pay in, and all should receive.
This article appears in May 10-17, 2012.