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So how does Ryan want to change this "Medicare"?
Under Ryan's proposal, starting in 2022, the government would no longer insure your medical care, but instead provide you with a subsidy to help you pay for insurance from a private carrier. In essence, instead of saying, "Here is some health-care insurance, elderly people," Medicare would be saying, "Here is some money, elderly people, use it to buy health insurance."
Tomato, tomahto, right? This is controversial?
Yes, because while it would save a ton of money for the government, there could be consequences for the elderly. The government is helping them get insurance, but no longer guaranteeing it. If Medicare enrollees can't afford the insurance they desire with the subsidy they've been given, that's too bad. They have to spend more of their own money, or, if they don't have the money, buy a lesser plan or even possibly forgo care altogether.
I also heard that Ryan's plan would alter Medicaid, which I'm pretty sure is a robot.
It is not a robot. Medicaid is the government health-care program for the poor, and under Ryan's plan, it will switch to a block grant system.
So the cash will be stacked in a more efficient rectangular shape, saving on shipping costs.
Sort of, but not really, at all. Currently, the federal government matches the money that states spend on Medicaid, so as states spend more, the federal government spends more. Under the block grant system, the federal government would just send a defined chunk of money to the states.
-more-
http://nymag.com/daily/intel/2011/04/paul_ryans_medicare_plan_in_a.html