Opinion

Candidates have starkly different visions for Medicare

Photo of Grover Norquist
Grover Norquist
President, Americans for Tax Reform
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      Grover Norquist

      Mr. Norquist, a native of Massachusetts, has been one of Washington's most effective issues management strategists for over two decades.

      Mr. Norquist is president of <a href="http://www.atr.org/">Americans for Tax Reform (ATR)</a>, a coalition of taxpayer groups, individuals and businesses opposed to higher taxes at the federal, state and local levels. ATR organizes the TAXPAYER PROTECTION PLEDGE, which asks all candidates for federal and state office to commit themselves in writing to oppose all tax increases. To date, 172 House members, and 34 Senators have taken the pledge. On the state level, 7 governors and over 1100 state legislators have taken the pledge.

      Mr. Norquist also:

      * Serves on the board of directors of the National Rifle Association of America.
      * Serves on the board of directors of the American Conservative Union.
      * Serves as a Contributing Editor to the American Spectator Magazine.
      * Serves as president of the American Society of Competitiveness.
      * Authored the book Leave Us Alone: Getting the Government's Hands Off Our Money, Our Guns, Our Lives

      In the past, Mr. Norquist served as:

      * A commissioner on the Advisory Commission on Electronic Commerce.
      * A commissioner on the National Commission on Restructuring the Internal Revenue Service.
      * Economist and chief speech-writer, U.S. Chamber of Commerce (1983-1984).
      * Campaign staff on the 1988, 1992, 1996 Republican Platform Committees.
      * Executive director of the National Taxpayers’ Union.
      * Executive director of the College Republicans.

      In the words of Newt Gingrich, Grover Norquist is "the person who I regard as the most innovative, creative, courageous and entrepreneurial leader of the anti-tax efforts and of conservative grassroots activism in America . . . He has truly made a difference and truly changed American history."

      P.J. O'Rourke says, "Grover Norquist is Tom Paine crossed with Lee Atwater plus just a soupcon of Madame Defarge."

      Arianna Huffington calls Norquist "The dark wizard of the Right's anti-tax cult"

      Mr. Norquist holds a Masters of Business Administration and a Bachelor of Arts degree in Economics, both from Harvard University. He lives in Washington, DC with his wife, Samah and his daughters, Grace, and Giselle.

As Mitt Romney is fond of pointing out, the upcoming election is about choices. On very few issues is the choice more distinct than on Medicare. President Obama’s Medicare plan is little more than benefit cuts for current seniors and certain Medicare bankruptcy for future retirees. The Romney-Ryan plan envisions no Medicare changes for current or near-retirees, and a reformed system for younger workers based on choice and competition.

President Obama has made it clear that he wants to cut Medicare benefits for current seniors. That’s why his healthcare law created an unelected panel known as “IPAB” whose sole job is to cut Medicare payments to hospitals and doctors, leading to real cuts in healthcare services for current seniors.

In addition to the steep provider cuts already provided for in Obamacare, the Obama administration wants to impose price controls on the medicines that seniors need to manage and cure illnesses. The Medicare prescription drug program (known as “Medicare Part D” in Washington, D.C.) provides robust competition among drug companies in order to get the best deal possible for seniors. Unlike the rest of Medicare (where competition is nowhere to be found), Part D is coming in under cost for taxpayers. Since the program started nearly a decade ago, costs have been 40 percent lower than initially anticipated. Satisfaction rates for seniors are around 90 percent. The rest of the Medicare program is headed toward bankruptcy, with Part D the only model of success to point to.

This competition has worked, which is why Part D (and the broader Medicare Advantage program) became the model for the Romney-Ryan Medicare reform plan for younger workers. This “premium support” plan has its origins not in a libertarian fantasyland, but in frank negotiations between Congressman Ryan and two lifelong liberal Democrats: former Clinton OMB Director Alice Rivlin and Oregon Democratic Senator Ron Wyden. The bipartisan roots of this “competition benefits everyone” concept go even deeper, to President Clinton’s Medicare reform commission, co-chaired by former Louisiana Democratic Senator John Breaux.

But the Obama administration and congressional Democrats want all of this to end. They want to impose price controls on prescription medicines by ordering drug companies to “rebate” some of the money they receive for some seniors’ medicines back to the federal government. In addition, Democrats in Washington want to have the federal government “negotiate” (read: dictate prices) to drug companies for seniors’ medicines. Together, these policies would result in top-down price controls coming out of Washington. The results would be disastrous for today’s seniors.

Basic economics tells us what happens when the government tries to impose price controls: scarcity. A person or company cannot, at the end of the day, be compelled to lose money. They will simply stop providing the good or service to the marketplace. The same effect will happen with the Beltway Democrats’ plan for Medicare — price controls on prescription medicines for seniors will directly lead to less availability of life-saving drugs for these seniors. It’s as sure as the sun rising in the East.