Before getting into the “Basics,” please understand that President Obama is NOT raiding Medicare for $716 Billion as has been alleged by Messrs. Romney and Ryan.
President Obama’s Plan is, at its core, a Cost-Savings Plan, based on benefiting from fixing the Gross Inefficiencies associated with all of Healthcare. In that regard, Healthcare Providers have agreed to accept less payment for their services and that cost-savings of approximately $716 Billion will be put back into Medicare to keep it operating AS IS for another 8-10 years. This was orchestrated as part of the Patient Protection & Affordable Care Act, otherwise known as “ObamaCare.”
Presidential Candidate Mitt Romney and his Running Mate Paul Ryan are proposing a very different Plan. They propose a Medicare $ Voucher, or $ Subsidy, which will be a Fixed Dollar Amount. It WILL NOT affect current Seniors but will come into effect in 10 years as Baby-Boomers begin to turn 65 years-of-age and choose to retire. The Cost-Savings is in the determination of the Voucher’s Fixed Amount. This Video describes the BASICS of each Plan.