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Tuesday, April 5, 2011

2012 Budget Proposal to Overhaul Medicare and Medicaid

The U.S. Congress has already released their 2012 budget proposal that would reduce more than $6 trillion in federal spending and streamline funds allocated for two major health care programs, Medicare and Medicaid.

The plan will spare Social Security that provides disability benefits. Under the proposal, the government will implement restructure on Medicare starting 2022 that includes discontinuing direct benefits payment for covered senior citizens. Their benefits will just come from their chosen private insurance companies subsidized by the government.

However, Americans aged 55 or older will not be covered by the proposal.
The White House expressed their arguments on Ryan’s proposal. On their statement, they implied that the plan will impose greater burden for the elders who rely mainly on Medicare, struggling families taking care of a disabled child, workers who have lost their health care coverage and poor students who rely on the program’s educational grants.

Although Congressman Paul Ryan’s initiative to give a fair and realistic resolution to our financial crisis is a good idea for some Americans, I agree with the critics. Instead of implementing financial cuts on government programs that help the elderly and poor Americans, why not find some other means?

The government may impose added taxes to those who can afford to pay more or just implement higher budget cuts on other programs that will not directly affect the poor.