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WH Economic Adviser Sperling: Ryan Budget Puts Medicare In "Death Spiral"

National Economic Director Gene Sperling: "This is what I find most disturbing: It takes this basic Medicare guarantee and essentially creates a two-tier system in which people and healthcare plans have a fundamental economic incentive to try to siphon off the healthiest and youngest workers thereby raising costs more for people who want to stay in Medicare. That drives more people out of Medicare making the cost even higher for those who remain. So this process risks creating an actual death spiral for the basic guarantee of Medicare as more people are forced out of the system and those who remain face higher and higher costs."

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