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The Medicare Myth, Or Why We Can't Trust Anything Our Politicians Tell Us about Health Care Financing

The 2013 Medicare Trustees report is out, and it proves once again that the so-called Medicare funding crisis is a myth that has been manufactured by political leaders more interested in cutting the size of government than in assuring access to health care for all. Those may seem like strong words, but we have been waiting for a long time for government leaders to tell us the truth about Medicare.  That it hasn’t contributed to our budget deficit.  That its trust fund is solvent.  And, most important, that it would take only the tiniest of tax increases to preserve Medicare as we know it for everyone who is alive today. The 2013 report was released last week.  Nearly one in every six (or 50.7 million) Americans is covered by Medicare.  42 million of them are age 65 and over, but 8.5 million are younger and living with serious disabilities. The combined Medicare expenditures – for parts A, B, and D – were $574 billion in 2012.  Taxes, co...

The Medicare Myth, Or Why We Can't Trust Anything Our Politicians Tell Us about Health Care Financing

The 2013 Medicare Trustees report is out, and it proves once again that the so-called Medicare funding crisis is a myth that has been manufactured by political leaders more interested in cutting the size of government than in assuring access to health care for all. Those may seem like strong words, but we have been waiting for a long time for government leaders to tell us the truth about Medicare.  That it hasn’t contributed to our budget deficit.  That its trust fund is solvent.  And, most important, that it would take only the tiniest of tax increases to preserve Medicare as we know it for everyone who is alive today. The 2013 report was released last week.  Nearly one in every six (or 50.7 million) Americans is covered by Medicare.  42 million of them are age 65 and over, but 8.5 million are younger and living with serious disabilities. The combined Medicare expenditures – for parts A, B, and D – were $574 billion in 2012.  Taxes, co...

A Little Compromise Will Save Medicare

A person who was unhappy with the outcome of the election suggested that the voters gave President Obama a “Mulligan” on election day – a second chance to do things right.  That’s one way to look at it. But if you belief that, then you also have to say the same thing about the divided Congress – it, too, was being given at least one more chance to get things right. That means agreeing to the surprisingly little compromise on which the future of Medicare will depend. It’s hard to understand how two sides looking at the same reality and sharing the same goals could be so far apart in coming to an agreement about what to do.  Nowhere is this more evident than in the Medicare program debate. Both sides acknowledge that Medicare is as popular as any entitlement, is as well run as any health insurance program, and addresses a need that is only going to grow in the coming years. They also agree on certain facts.  The first is that Medicare hasn’t yet cont...

A Little Compromise Will Save Medicare

A person who was unhappy with the outcome of the election suggested that the voters gave President Obama a “Mulligan” on election day – a second chance to do things right.  That’s one way to look at it. But if you belief that, then you also have to say the same thing about the divided Congress – it, too, was being given at least one more chance to get things right. That means agreeing to the surprisingly little compromise on which the future of Medicare will depend. It’s hard to understand how two sides looking at the same reality and sharing the same goals could be so far apart in coming to an agreement about what to do.  Nowhere is this more evident than in the Medicare program debate. Both sides acknowledge that Medicare is as popular as any entitlement, is as well run as any health insurance program, and addresses a need that is only going to grow in the coming years. They also agree on certain facts.  The first is that Medicare hasn’t yet cont...

Ending the Medicare Debate

If you care about Medicare, then who lost last week’s Presidential debate?  Perhaps we all did. That’s because both candidates favored some cuts in the Medicare program.  And cuts translate into a real impact on real people. But no cuts could mean something even worse - unsustainable levels of spending in the Medicare program. The question is what’s the lesser evil – a cut in payments to providers or a cut in benefits to individuals?  That’s the choice President Obama and Governor Romney gave us. President Obama favored cuts in payments to providers.  Governor Romney favored cuts in benefits to individuals.  The difference in their positions became clear as Romney pressed his point about the $716 billion in “cuts” that Obama supported in the Affordable Care Act. The “cuts” Obama favored actually fell into two categories that are built into the law – provider rate reductions and cuts to private insurers offering Medicare Advantage plans...

Ending the Medicare Debate

If you care about Medicare, then who lost last week’s Presidential debate?  Perhaps we all did. That’s because both candidates favored some cuts in the Medicare program.  And cuts translate into a real impact on real people. But no cuts could mean something even worse - unsustainable levels of spending in the Medicare program. The question is what’s the lesser evil – a cut in payments to providers or a cut in benefits to individuals?  That’s the choice President Obama and Governor Romney gave us. President Obama favored cuts in payments to providers.  Governor Romney favored cuts in benefits to individuals.  The difference in their positions became clear as Romney pressed his point about the $716 billion in “cuts” that Obama supported in the Affordable Care Act. The “cuts” Obama favored actually fell into two categories that are built into the law – provider rate reductions and cuts to private insurers offering Medicare Advantage plans...