Paul Ryan and the Problem With Competitve Bidding

—By Kevin Drum  | Sat Aug. 18, 2012 10:40 AM PDT

Paul Ryan is in Florida today promoting his Medicare plan, but there's a part of his plan that he very carefully avoided talking about: what he'll do if his cost controls don't work.

Let's recap: Ryan's plan relies on competitive bidding to hold down costs. Insurance companies bid for Medicare contracts, and seniors all get a voucher that allows them to purchase the second cheapest plan. They can buy one of the cheap plans; they can buy standard Medicare (which submits a bid along with everyone else); or they can pay more and buy a more expensive plan.