FOR IMMEDIATE RELEASE

April 7, 2011

American Seniors Association Praises Ryan Plan

ATLANTA— “There is no question that Medicare needs to be modernized since its expenditures are out of control, and that is why the proposal by U.S. Congressman Paul Ryan, R-Wisc., is welcomed because implementation by the Congress would ease the burden on taxpayers while introducing private market competition to dramatically control costs,” says Phil Kent, CEO of the American Seniors Association (ASA) representing millions of members nationwide.

 “On the first anniversary of Obamacare, it should be clear to all that the federal government bureaucracy is totally in charge of healthcare policy. This expensive legislation, with its transition period of several years, is already leading to steep declines of healthcare choice and quality,” Kent says. “With regard to Medicare, the government sets prices for thousands of services, then pays any physician or medical facility based on a visit. This absurd fee schedule applies to the best and the worst medical facility, and bills for the patient visit continue to be sent to the overburdened taxpayer. The Ryan proposal seeks to end this growing and unsustainable problem.”

 “Under the Ryan premium support model, seniors would be able to pick from an array of private insurance options of the kind younger workers in the private sector utilize. These plans would be subsidized by a defined contribution, roughly equal to what the government now spends per person. This $15,000 subsidy would grow over time, but seniors who want more expensive plans would pay out of pocket,” Kent notes.

“The Wall Street Journal rightly notes that ‘premium support would create a market reward for the services that consumers value. Because seniors would be chipping in at the margin, only above the fixed-dollar subsidy, most would favor lower premiums.’ And ASA likes the fact that insurers would compete to supply them, and providers in turn would have a reason to improve healthcare delivery and services,” Kent says.

“President Obama offers no reform and no vision regarding healthcare and Medicare policy – except for government rationing of healthcare services and more debt. In this context, ASA members should urge their congressmen and senators to support the Ryan plan— one of the best public policy reforms to be introduced in a generation,” Kent says.

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www.americanseniors.org