Campaign 2010

May 02, 2011

Paul Ryan Falsely Claims the House Republican Budget “Gets to the Root of Health Care Inflation”

On ABC’s This Week today, House Republican Budget Committee Chairman Paul Ryan (WI-01) falsely claimed that his House Republican budget lowers health care inflation.  Ryan said, “We're also saying, you’ve got to get at the root of the cause of health inflation.”


In reality, Representative Paul Ryan and House Republicans overwhelmingly voted for a plan that increases health care costs for seniors or their families and does nothing to lower health care cost inflation.




Republican Budget Increases Health Care Spending. According to the Center on Budget and Policy Priorities, Ryan’s budget plan would increase total health care spending attributable to Medicare beneficiaries (the beneficiaries’ share plus the government’s share) by upwards of 40 percent, according to the Congressional Budget Office (CBO). [CBPP, 4/8/11]


Increases Administrative Costs and Cuts Ability to Negotiate for Lowest Possible Payment Rates. Privatizing Medicare, as the Republican Budget does, would increase health spending substantially for two reasons, CBO explains.  First, private health insurance plans have much higher administrative costs than traditional Medicare.  Second, private plans cannot negotiate payment rates for health care providers that are as low as Medicare’s. [CBPP, 4/8/11]


Republican Budget Doesn’t Decrease Health Care Inflation.  “The more I look beneath the hood of Ryan’s budget, the weirder — or, to be more accurate, less realistic — things get… Under Ryan-Rivlin, Medicare and Medicaid would grow at 5 percent — a bit less than health-care costs in general, but not that much less. Under Ryan, Medicare and Medicaid would grow at 2 percent — beneficiaries would have to make up the difference….Medicare’s costs move to seniors, or to the families of seniors…The budget doesn’t have a clear theory for how to spend less on health care.” [Washington Post, 4/6/11]