It’s no secret to anybody who’s been paying attention to budget numbers that the United States, with a current GDP of just under $14 trillion, is $52 trillion in the hole in one specific area: Medicare and Social Security payments owed to those who have already prequalified by paying into the system.
“Think about that: Unless you accept government-run health care, you have to forfeit Social Security — a federal benefit you have paid into for your entire life.”
You can flip and fudge the numbers any way you want; no matter what, that’s some real money we’re talking about right there — and that’s just what’s already owed folks who are over 22 and in the workforce or have already retired, all having paid into the system at some point. The program could be ended today, and that’d be the unfunded liability we the taxpayers are facing: $52 trillion!
A Lack of Choice You Probably Didn’t Know About
Here’s something you might not know: the federal government skirts around this issue when doing its budgeting by counting Medicare and Social Security as “liabilities,” rather than “debts,” because those who are or will be eligible for returns under the programs have no actual binding or contractual right to those returns. That’s why you hear so much about a $7 trillion-ish national debt — that additional $52 trillion is left out of the discussion through a nefarious governmental play on words!
Here’s something else you might not — actually, probably don’t — know: Current and future Medicare costs for those already owed benefits make up over 60% of that liability ($32.3 trillion). Given this, you might think it a good idea to opt out of a Medicare program that probably won’t be solvent enough to cover the costs of your care as a retiree, in favor of a Health Savings Account or some other less costly, more efficient health insurance plan, which you can help pay for with your meager Social Security benefit checks.
Unfortunately, that’s not an option under federal law. Whether there’s money to fund your Medicare or not, once you’re retired, you’re legally required to accept Medicare as your health coverage. If you try to turn down Medicare Part A and go with another, more cost-effective (and higher quality) form of coverage, you officially forfeit your ability to collect on the Social Security benefits you paid into your entire working life!
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