Unless you’re a magician, trying to balance the Medicare budget would be impossible. With more being spent than what is being set aside, the “well” is bound to dry-up in the very near future.
Medicare is at the top of the “must fix it now” list that our current and/or future administration must find a solution. I couldn’t have said it better myself. Instead of trying to, I’ll redirect you to a brilliantly written article on the current condition of Medicare. (http://www.washingtonpost.com/opinions/the-illusion-of-health-care-trust-funds/2012/10/18/844047d8-1897-11e2-9855-71f2b202721b_story.html).
The opening statement in the article just about say’s it all:
“Machiavelli famously advised princes to use deception to win power and to get things done. Five centuries later, a deception used by our leaders to win power is making it harder for them to fix the biggest issue facing our nation.
If we do not reduce the growth rate of healthcare costs, they will consume the federal budget. We risk a debt crisis rivaling the 2008-09 crash. Changes that other countries have made soberly, achieving lower costs and better health outcomes, will be imposed on us by our creditors. Their goal will be the return of their money, not the quality of Americans’ health care.”
Basically, the problem with Medicare is very straightforward:
*$549 billion spent versus $325 billion in assets under the existing Medicare program
*Only 38% of Medicare is covered with payroll taxes versus 62% in 1990
*Beneficiary current premiums cover only 13% of Medicare costs
*The Federal government will need to deposit $27 Trillion into Medicare, and $11 Trillion into Social security to cover retiring babyboomers
*Life expectancy in America is now over 80+ years of age for both male and female
*Women are outliving men by 5+ years
*The current economic crisis has depleted most retiree’s income from their investments, lowering their financial resources while increasing their need for government assistance
*Effective October 1, 2012 “The Affordable Care Act” (aka Obama-care) began penalizing hospitals for too many re-entering of Medicare patients
*The National Debt has increase four fold in four years
In 2000, the National Debt hovered slightly above 5.4 Trillion. Since 2008, it grew from 10.6 to $16 Trillion, and it’s still growing. Under the current administration, the answer is to keep doing more of the same. There hasn’t been a balanced budget in four years, and there isn’t an answer currently in sight under the Obama administration. All of this will mean one thing: Medicare will run out unless we have a solid answer to fix the current debt crisis.
Starting January 1, 2013, the Affordable Health Care Act will begin penalizing anyone without health care insurance by way of a “tax penalty”. Currently, health insurance premiums are not regulated, leaving the door wide open for American’s to be at the mercy of whatever insurance companies wish to charge for coverage. Doing something as simple as regulating insurance companies and what they can charge for health insurance coverage would make a lot more sense.
Unemployment remains at a staggering 7.8%. Less tax dollars are going towards future needs. We’ve simply spent more than we have saved, and it is now coming back to haunt our retirees.
The debate over taxing the rich doesn’t work. The current federal tax rate on the mere 1% would have to jump from 24% to 80%, and we all know that isn’t likely to happen. Once you start making the “rich” poorer, you start making the “poorer poorer”. See Thomas Peterfly’s commercial (http://youtu.be/UnX7TNFIELg).
I’ve taken a humble stab at a particularly large problem we all will face one day. If anyone has an answer, I’d be delighted to hear back from you. Enjoy!
Quick Tips for Wellness: Socialism is not the answer. Vote for the President you feel will bring our budget back into balance and can work with both political parties.
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