A reader and former health insurance executive examined Paul Ryan's ridiculous Medicare privatization plan (see also this) and came up with the following analysis:
A Medicare supplement such as BC/BS Plan 65 covers the 20% of the allowed charge that Medicare does not cover--and note that the Medicare deductible is $100 yearly.
Now, presumably, BC/BS makes a reasonable profit on this. It would seem reasonable that if BC/BS Plan 65 had to cover 100% of the cost, it would need to price its product at five times the cost of its supplement. That is, 5 X 20% = 100%.
I just got off the phone with BC/BS. At that rate the MONTHLY premium for one aged 73 would be $900; at age 80 or older, the MONTHLY premium would be $1200.
THESE ARE MINIMUM RATES; THE ACTUAL RATE WOULD BE DETERMINED BY THE UNDERWRITERS.
Does anyone think the typical 73 year old retired person can afford $10,800 yearly for health insurance or that a typical eighty year old person can afford $14,400 yearly for health insurance?
Think about that; more than $20,000 yearly for a couple at age 73; almost $30,000 yearly for an elderly couple 80 or older to purchase health insurance.
But Paul Ryan is "bold and brave" for coming up with such awfulness, according to the Washington corporate press. Shame on all of them.
Adding... There's a reason why Medicare cuts and privatization, as well as raising the retirement age or cutting Social Security benefits are so popular with the media elites. It's because they're rich. But removing the payroll tax cap is inconceivable to them. Once again, because they're rich, and they'd have to pony up in order to keep Social Security and Medicare solvent. This is yet another reason why the notion of a "liberal media" is horseshit.