There are two points that say privatization of public insurance is good in that it offers consumers more options and increases competition in the insurance industry. Proponents for privatization say both those changes would be financially beneficial for consumers in the long run.
House Speaker Paul Ryan whose alternative proposal, A Better Way, is being touted as a possible solution to revamping the health care system, says “The Medicare premium support payment would be adjusted so that the sick would receive higher payments if their conditions worsened; lower-income seniors would receive additional assistance to help cover out-of-pocket costs; and wealthier seniors would assume responsibility for a greater share of their premiums.”
One of the main reasons for the drive to make changes to Medicare is the continued aging of the population and the ratio of those employed to those retired declines. Disparities such as this contribute to an economic conundrum that the new administration hopes to bring under control.
While the way may not yet be clear, Paul Ryan’s “A Better Way” may offer some viable solutions.