OPINION: Ryan budget 'cracks the silence' on fiscal challenges

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The Hill:

We commend House Budget Committee Chairman Paul Ryan for tackling entitlements in his fiscal year 2012 plan released Tuesday. Few elected officials, thus far, have been willing to outline a plan for reducing the growing costs of Medicare and Medicaid, which is necessary for any attempt to rein in America’s out-of-control debt. Chairman Ryan has now done so. His plan is a step in the right direction as Congress works to develop a comprehensive multi-year plan that cuts projected deficits and debt.

As co-chairs of the Bipartisan Policy Center’s Debt Reduction Task Force, we and our bipartisan membership concluded that spending restraints alone cannot meet the challenges ahead. Our fiscal and economic future hangs in the balance. We believe strongly that if Chairman Ryan negotiates with the president and the Senate on the FY 2012 budget, he too will conclude that revenue increases are necessary. All parties will also have to subject defense spending to the same scrutiny now being applied to domestic discretionary spending programs.

Chairman Ryan’s budget, however, courageously proposes substantial reforms to both Medicare and Medicaid. Like our Task Force, he would transition Medicare to a premium support system, allowing seniors to choose among competing plans on a well-regulated exchange — which should help to promote innovation and drive down costs — and capping the growth of total Medicare subsidies. Although his version of premium support is different from ours, we agree on the basic concept. He also recognizes that the Medicaid system needs significant reform, and that giving states more discretion can help to control costs.
While we are encouraged to see Chairman Ryan confront the largest drivers of our debt, there are some particulars where we differ with his plan. For example, within a premium support system, we believe that maintaining traditional fee-for-service Medicare as an option is essential. We also think that additional safeguards will be needed under the Medicaid block-grant initiative to ensure adequate healthcare for the most vulnerable in society.