Radical Changes to Medicare, Medicaid in Ryan Proposal; CBO Analysis Challenges Some Assumptions

The Medicare program should be privatized starting in 2022 and Medicaid should become a block grant-style program starting in 2013, according to a budget proposal released by White House Budget Committee Chairman Paul Ryan. The goal of Chairman Ryan’s plan is to reduce future federal spending by $6.2 trillion by 2022, and offer states flexibility in how they provide safety net health care services. The Congressional Budget Office (CBO) analyzed the proposal at Chairman Ryan’s request, and concluded that the proposal’s savings would be achieved by shifting costs to individuals. The Medicare program would be . . .