Voucherization of Medicare
By Arnold Kling
President Barack Obama’s deficit commission on Wednesday debated a dramatic plan to gradually turn Medicare from a system in which the government pays most beneficiaries’ medical bills into a program in which seniors would purchase health insurance with government-issued vouchers.
The shocker is that Alice Rivlin joins Paul Ryan in backing the plan.
If you want to have a fixed (as opposed to open-ended) Medicare budget, you either need rationing or vouchers. What individuals want is unlimited access to medical services without having to pay for them. But that is unsustainable.