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Michael Tanner, CATO Institute senior fellow, on the state of Medicare and its role in the 2012 elections.
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Cellular unannounced news conference -- in the -- -- President Obama said millions of America's seniors.
Have saved billions of dollars in prescription costs thanks to his action on -- -- my next guest says well no matter who wins the election in November up.
Medicare as we know it is doomed unless something is done joining me now Michael -- the senior fellow at the Cato Institute.
Obviously lot of scare tactics going around on both sides so with regard to Medicare I was reading David Axelrod that's -- president's campaign chairman saying that the Ryan plan.
Would throw his 85 year old cancer stricken filed -- rough Medicare.
But then I look at the Ryan plan it's simply not true because anyone 55 and older right now wouldn't be affected it is not right.
Well that that's -- right the Ryan plan we should be very clear about.
Does not affect current recipients or people who are getting near to retirement -- I happen to think it actually should given Medicare's perilous finances.
But the fact is that they leave those folks out of it so they have no dog in this hunt.
-- let's talk about the the dire situation now Medicare trustees say that the unfunded liabilities may be you know little more than 38 trillion dollars.
You perhaps believe that that number may be closer to ninety trillion dollars how long can this program continue to operate before it's completely bust.
While we should recognize Medicare actually ran a 200 billion dollar deficit last year.
So every year this is adding billions to our national debt.
The fact is that going forward it cannot continue to pay the benefits that promised.
Medicare as we know it is doomed and that's regardless of which president wins this this November whether we have president Romney -- President Obama.
Neither one is going to give seniors what they currently receive for the same amount of money is just not possible.
-- talked about the Ryan plan what about president Obama's Izzy -- have run for Medicare.
Not really in fact Treasury Secretary Geithner actually testified before congressional committee.
That they don't have plan for saving Medicare but they don't like the Republican plan -- that was essentially is testimony.
The reality is the president does have some minor trends.
Contained within the health care law there's some of minor trimming of the current Medicare about 700 billion dollars over ten years.
If you assume all those -- take place and they Congressional Budget Office in the trustees of Medicare don't believe they will.
And he also has this new sort of unelected board and the independent payment advisory board which will set reimbursement rates under Medicare in the future and that's going to be able to essentially.
Cut Medicare by cutting what we pay doctors and hospitals the president you heard him today say that for that doesn't affect seniors and -- maybe not directly.
But if doctors and hospitals are driven out of business because Medicare doesn't pay -- their costs.
It's going to get awfully hard to find a doctor.
But do you think the Ryan plan goes far enough and deep enough to get this program back on track.
But not even close side you know that's why Paul Ryan's budget didn't balance for forty years.
For all the talk about -- -- radical Paul Ryan is this is really a very modest approach.
And even the approach that Paul Ryan was willing to take Mitt Romney is backed away from.
Paul Ryan incorporated those 716.
Billion dollars in presidential cuts as part of his budget.
-- Ryan now says he'll repeal all of those cuts and all right thank you so much Michael Tanner of the Cato Institute appreciate -- -- Interesting that practical on Ryan's -- instantly.
