Romney Campaign Press Release - Fact Sheet: Mitt Romney and Medicare

As President, Mitt Romney Would Sign The Ryan Plan:

In Early June, Romney Answered "Yes" When Asked Whether Or Not He Would Sign The Ryan Plan. "On health care, Romney responded ‘yes' when asked if he would sign the plan written by Rep. Paul Ryan that would restructure Medicare if it reached his desk as President, but quickly added that he would be offering his own plan." (Emily Friedman, "Romney Talks To ABC News About Health Care, Jobs, Ties And Red Sox," ABC News, 6/2/11)

Romney Has Repeatedly Praised The Ryan Plan — Saying It Sets "The Right Tone" — And Notes Similarities With His Own Plan:

Romney, In April: "[Ryan] Is Setting The Right Tone For Finally Getting Spending And Entitlements Under Control. Anyone Who Has Read My Book Knows That We Are On The Same Page." ("Updated: Prez Hopefuls Back Ryan's Budget Axe," Politico, 4/5/11)

Romney, In May: "I Applaud Representative Ryan ... I Appreciate What Paul Ryan Has Done." ROMNEY: "I applaud Representative Ryan for putting a plan on the table that acknowledges that Medicare can't go on like it is without ultimately hitting a wall. I want Medicare to survive not just for those that are current retirees or near retirees — and of course the Ryan plan doesn't change Medicare for any retiree or near retiree — but I want Medicare to survive for younger people, in their 20s, 30s, 40s, and early 50s, and Paul Ryan lays out a plan to do just that. I'm waiting to see what Democrats have. I know at this stage all they have is criticism. But if we don't make any changes, then Medicare won't be there for the next generation and that's unacceptable to me. So I appreciate what Paul Ryan has done." (Mitt Romney, Remarks in Ankeny, IA, 5/27/11)

Congressman Ryan Praised Romney's Fiscal Plan As "A Great Development":

Ryan Said Romney's Fiscal Policy Is "Perfectly In Keeping With Serious Reform." "I asked [Ryan] about Romney's decision to offer traditional Medicare as one option in the premium support plan. He said that he and former Fed vice chairwoman Alice Rivlin had discussed that idea, and so long as the government, as Romney detailed, would provide a capped amount to be used either for traditional Medicare or for private plans, the same cost savings could be obtained under Romney's plan as under the plan Ryan proposed as part of the 2012 budget. Ryan deemed this approach as ‘perfectly in keeping with serious reform.'" (Jennifer Rubin, "Exclusive Interview: Paul Ryan Has Nothing But Praise For Romney Plan," The Washington Post, 11/4/11)

• Ryan: "This plan is in perfect keeping with what we've been talking about." (Robert Costa, "Ryan Praises Romney Fiscal Plan," National Review, 11/4/11)

• Ryan: "This is getting us toward a prosperity agenda that will allow the private sector to grow." (Jennifer Rubin, "Paul Ryan Has Nothing But Praise For Romney Plan," Washington Post, 11/4/11)

• Ryan: "Look at what [Romney] put out! This is a great development." (Jennifer Rubin, "Paul Ryan Has Nothing But Praise For Romney Plan," Washington Post, 11/4/11)

MITT ROMNEY'S PLAN TO FIX MEDICARE

"Getting our fiscal house in order has become more than just an economic issue; it's a moral imperative." —Mitt Romney

Mitt Romney has laid out the approach he would take to modernizing America's entitlement programs, guaranteeing their continued vitality for future generations.  Romney's proposals would not affect today's seniors or those nearing retirement, and they would not raise taxes.  Romney proposes that tomorrow's Medicare should give beneficiaries a generous defined contribution, or "premium support," and allow them to choose between private plans and traditional Medicare.

"We must honestly and seriously deal with the future of Social Security and Medicare. In their current form, these programs are unsustainable. Unlike President Obama, our next president must protect these programs, improve them, and keep them sustainable for generations to come." —Mitt Romney

The Romney plan honors commitments to current seniors while giving the next generation an improved program that offers the freedom to choose what their coverage under Medicare should look like.  Instead of paying providers directly for medical services, the government's role will be to help future seniors pay for an insurance option that provides coverage at least as good as today's Medicare, and to offer traditional Medicare as one of the insurance options that seniors can choose.  With insurers competing against each other to provide the best value to customers, efficiency and quality will improve and costs will decline.  Seniors will be allowed to keep the savings from less expensive options or choose to pay more for costlier plans.

KEY ELEMENTS OF THE ROMNEY PLAN

• Nothing changes for current seniors or those nearing retirement

• Medicare is reformed as a premium support system, meaning that existing spending is repackaged as a fixed-amount benefit to each senior that he or she can use to purchase an insurance plan

• All insurance plans must offer coverage at least comparable to what Medicare provides today

• If seniors choose more expensive plans, they will have to pay the difference between the support amount and the premium price; if they choose less expensive plans, they can use any leftover support to pay other medical expenses like co-pays and deductibles

• "Traditional" fee-for-service Medicare will be offered by the government as an insurance plan, meaning that seniors can purchase that form of coverage if they prefer it; however, if it costs the government more to provide that service than it costs private plans to offer their versions, then the premiums charged by the government will have to be higher and seniors will have to pay the difference to enroll in the traditional Medicare option

• Lower income seniors will receive more generous support to ensure that they can afford coverage; wealthier seniors will receive less support

• Competition among plans to provide high quality service while charging low premiums will hold costs down while also improving the quality of coverage enjoyed by seniors

QUESTIONS AND ANSWERS ON MITT ROMNEY'S PLAN TO FIX MEDICARE

• What are the immediate effects of this plan? This plan has no effect on current seniors or those nearing retirement.  It will go into effect for younger Americans when they reach retirement in the future.

• How is this different from the Ryan Plan? Governor Romney shares Congressman Ryan's goals and believes his general approach of premium support is the right one.  Existing Medicare spending would be repackaged as a fixed-amount benefit to each future senior that he or she can use to purchase an insurance plan with coverage at least comparable to what Medicare provides today.  Unlike the Ryan Plan, Romney's approach keeps traditional Medicare available as one of the insurance plans that seniors can choose among.  Other details will differ as well.