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House Republicans target Medicare in new budget

BALTIMORE (Reuters) – Republicans in the House of Representatives will put forward a budget plan this year that will seek substantial reforms to health benefits for the elderly and make aggressive strides toward reducing deficits, a senior lawmaker said on Friday.

House Budget Committee Chairman Paul Ryan said he wanted his budget plan to offer voters an alternative vision to the “cradle-to-grave welfare state” that he says Democratic President Barack Obama is promoting.

The House Republican budget resolution will contain reforms to Medicare, the healthcare program for Americans 62 and over, such as providing subsidies to help recipients pay for private insurance, based on their wealth and medical needs.

“We haven’t written it yet, but we’re not backing off on the kinds of reforms we’ve advocated,” Ryan told reporters at a retreat for House Republicans in Baltimore.

Ryan said there was emerging bipartisan support for such “premium support” plans as the best way to save Medicare, which he said was going broke.

The Wisconsin congressman caused an uproar last year by proposing a plan effectively to privatize Medicare by turning the popular $525 billion fee-for-service program into a system of vouchers to be used by recipients to buy private insurance.