Autopilot, or mandatory, spending programs like Medicare, Medicaid and Social Security are quickly becoming insolvent and heading for bankruptcy. If we don't act soon, the people who rely on them most--seniors and our neighbors in need--might not get the assistance they need from our social safety nets, and there will be nothing left for future generations. And because they make up nearly 2/3 of our federal budget, it's unlikely that we will ever balance our budget or solve our debt crisis without some sort of reform to these programs.
In order to preserve and protect these programs, I have supported legislation that would responsibly and slowly reform them. On Medicare, for instance, the Budget Committee exempted current seniors and anyone near retirement--that is, anyone age 55 or older--from any changes whatsoever. If we act now, we can afford to include such exemptions and won't disrupt anyone's retirement. The longer we wait, however, the fewer people we can exempt. Here is some of the legislation I supported to preserve and protect our safety net programs:
As a member of the Budget Committee, I helped develop a plan for Medicare that would leave current benefits in place for anyone age 55 and up. For those younger than 55, however, the program would allow more flexibility in choosing a health insurance plan. Instead of making payments to medical providers, Medicare dollars would be used to pay your insurance premiums.
This is exactly like the health care provided to federal employees and members of Congress.
Additionally, by limiting the benefits available to upper income seniors, we can provide even more generous coverage to lower income and chronically ill seniors who most rely on the program.
Chairman Paul Ryan asked me to unveil the Budget Committee's plan for Medicaid at a nationally televised press conference last March. Our plan would convert Medicaid into a block grant system to states. Instead of dictating how they spend their Medicaid dollars, it would give them the flexibility to create a plan that worked for their residents, such as the Healthy Indiana Plan right here at home. Not only would such freedom allow states and the federal government to save money, but it would also increase the assistance available to lower income Americans.