Senator Rand Paul stopped by our WBKO studios Friday night, to talk about his recent announcement with Senators Jim DeMint and Mike Lee, to end Medicare, and replace it with the Congressional Health Care Plan currently enjoyed by all federal employees.
"Premiums are probably about half as much," said Paul. "Out of pocket costs are less. It's just a much more efficient system. Medicare doesn't work because it's purely run by the government and the prices are set by government. Here the prices are set by competition."
"The Congressional Health Care Plan that all the federal employees have," Paul continued, "I think 200 people run the whole thing. So it's really, really lean and efficient and we think it would do better than what we do currently with Medicare."
Senator Paul told us Medicare is $35-$40 trillion short, and his plan would save $1 trillion over ten years. He also said if the government doesn't do something to cut entitlements, those entitlements will consume the entire U.S. budget in five to ten years.