Ways and Means wades into controversial Medicare proposals

The House Ways and Means Committee’s health panel will hold a hearing next week on proposals to at least partially privatize Medicare — proposals that landed with a thud just a year ago.

Democrats have hammered the Medicare plans championed by Rep. Paul Ryan (R-Wis.), and his budget outline last year helped bolster Democrats’ hopes of winning back the House majority. Establishment Republicans were also wary of the idea last year, warning against moving forward with Ryan’s plan.

Lobbyists and political observers noted last year that Ways and Means, which would have to pass the Medicare policies that Ryan’s budget called for, didn’t make any moves last year to advance the plan.

But Rep. Wally Herger (R-Calif.), who chairs the Ways and Means health subcommittee, offered a strong endorsement Friday for plans like Ryan’s. 

“The premium support model holds promise to place Medicare on sound financial footing while transforming and modernizing the program to provide greater choice for beneficiaries,” he said in a statement. “Such proposals have enjoyed bipartisan support for decades, and it is time to move beyond partisan arguments and focus on the bipartisan solutions that will strengthen and improve Medicare for future generations of Americans.”

There are many versions of “premium support.” The core of the idea is to end or phase down the traditional Medicare program, which guarantees coverage for a set benefits package, and convert the federal funds into subsidies to help seniors pay the premiums for private insurance.

Ryan’s original plan would have privatized the entire program. A revised plan, which he crafted with Sen. Ron Wyden (D-Ore.), would leave traditional Medicare intact as an option.

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