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FRONT PAGE CONTRIBUTOR

The Medicare Crisis is Here

For years now, the American people have been treated to a single response from Democrat lawmakers and executives when it comes to reforming our bloated, foundering retirement programs: There Is No Crisis. That’s been the mantra of Barack Obama, Harry Reid, Nancy Pelosi, and many other Democrats since George W. Bush attempted to stave off the collapse of the taxpayer-funded retiree safety net – the crisis isn’t here yet, so it’s certainly no time to act!  Heaven forbid that action would be taken in advance, so as to avert an impending crisis; after all, we all know that the truly wise build their ark after the rains begin, rather than before.

The fact is, the crisis is here – particularly for Medicare, which is so far underwater it would take several United States’ to pay off just what is owed right now to those who have already paid into the system (and who are therefore owed benefits at some point).  As usual, though, the Democrats – who, as the owners of the Senate and the White House have the responsibility to act or to accept the justified blame for system collapse – are not only covering their ears and eyes and declaring that no crisis exists, but are attempting to demonize any who dare point out fiscal and medical reality while scaring seniors into voting Democrat lest they be thrown off cliffs by evil, murderous Republicans (yes, the same evil, murderous Republicans who “want you dead” so they can “make money off your corpse,” and whose “health care plan is [for people to] die quickly“).

Erick’s brief post on the Democrats’ Medicare (non-)plan captures the spirit of the situation well:

Given the Democrats’ latest ad campaign showing someone throwing grandma off a cliff as the Republican solution to Medicare, I think the Republicans need to respond in kind.

It is clear the Democrats have no plans other than to let Medicare go bankrupt.

I think the Republicans should show a grandmother lying in bed with her son coming home with an oversized prescription bottle that has a pillow in it. “Grandma,” he says, “it say to place this over your head.”

That amounts to the Democrats solution to healthcare. Instead of saving Medicare, they are happy to let senior citizens’ coverage deteriorate to bankruptcy so they canter again impose radical socialist solutions as a fix.

Not sure that the Medicare crisis is really here? Let’s run through a few numbers.

At its inception in 1966, Medicare carried an annual price tag of $3,000,000,000.00. Its Congressional founders predicted that cost would rise to $12,000,000,000.00 a year by 1990 — a figure that accounted for inflation, and therefore was expected to be an accurate representation of costs at that point.

Thanks to the inefficiency of the government-run program, that estimate missed the mark by orders of magnitude. In 1990, rather than costing American taxpayers $12,000,000,000.00, Medicare cost $107,000,000,000.00 — an increase of 800% over the government’s best guess at the program’s cost 23 years before.

That cost has increased exponentially as the years have passed since 1990. In 2009, $484,000,000,000.00 was spent on mandatory Medicare outlays; by 2018, that number will be $885,100,000,000.00, according to the Congressional Budget Office. According to the 2011 Trustees report, the total amount owed Medicare beneficiaries (American workers who are at least 22 years old and who have paid into the system, meaning they are due Medicare coverage upon retirement) is $24,600,000,000,000 (down from a projected $32,300,000,000,000 two years ago, in part due to phantom savings claimed under Obamacare) — an amount nearly twice America’s GDP, and nearly five times the publicized national debt.

Those are the numbers: our nation’s health care program for seniors is currently twenty-five trillion dollars in the hole.  In other words, unless we find a couple more American economies between the couch cushions that we can dedicate solely to paying Medicare costs, the program will utterly collapse under its own weight, resulting in nobody receiving the health care they need – an outcome that all should be able to agree is unacceptable, for a variety of reasons.

The U.S. is currently surging toward fiscal default, while our most basic service programs are being crushed under the weight of debts that are far larger than our entire economy – and Democrats are responding to this crisis by sitting on their hands, rather than grabbing a bucket (let alone manning a pump) to help bail our rapidly foundering ship of state.

Further, the fact that Congress has refused to do away with a law requiring seniors to enroll in Medicare or forfeit their Social Security benefits for fear of losing a massive number of seniors to private health coverage serves to reinforce the undesirability of the government-run program.

It also demonstrates the federal government’s willingness, when given the opportunity, to force citizens onto the rolls of government care by denying them the opportunity to choose their coverage.  For Exhibit A of why that’s a bad thing, glance upward two paragraphs and look once again at those numbers. That should be all the fiscal evidence you need to understand why the government running health care is an unacceptable situation.

COMMENTS

  • izoneguy

    Medical students and young physicians are turning away from careers in primary care medicine, and Congress must act now to stabilize Medicare payments to physicians as a first step to avert the looming crisis in patient access to primary care that this will cause.

    http://www.acponline.org/pressroom/patient_access.htm

    This article was published on November 17, 2005. Almost 5 1/2 years ago.

    Look at the British Health Service:

    Elderly patients dying of thirst: Doctors forced to prescribe drinking water to keep the old alive, reveals devastating report on hospital care

    Read more: http://www.dailymail.co.uk/health/article-1390925/Elderly-patients-dying-thirst-Doctors-forced-prescribe-drinking-water-old-alive-reveals-devastating-report-hospital-care.html#ixzz1NVLz9Zp4

    This is a glimpse of the future under ObamaCare.

    • powertothepeople

      that anywhere in civilized society a person dies in a hospital not from disease, but from a lack of abundant water. If this were to happen to one of my family members, there would be a sudden outbreak of lead poisoning.

  • usadying

    One doesn’t “pay into the system” for future benefits. Medicare tax withholding is supposed to pay for current outlays. The perfect storm has come. People are living longer, the retiring baby boomers are going to put enormous stress on the system, and the recession has caused a decline in tax receipts. I am ashamed of my fellow boomers who scream and holler for their entitlements, but selfishly ignore the burden they are placing on their children and grandchildren. The civil war pitted brother against brother. The near future may pit children against parents. The road to hell is paved with good intentions.

    • http://908StraightSt.wordpress.com/ mbecker908

      In that the Federal Government has no business doing either. And if both are not privatized our grandchildren will be living in the north American equivalent of Zimbabwe.

      • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
    • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

      say that we will do nothing to try and avert the impending crisis, just as the Dems are doing under cover of attacking us for trying to avert the crisis. Seriously, and I don’t advocate this strategy, but simply admit that it sis quite possible that we as a people have passed the tipping point of having a majority of voters that are responsible. Couple that gamble with the quite real possibility with the fact that even if we haven’t reached that point, we have reached the point where the financial crisis due to debt and the nations that have been doing the lending is inevitable and that no matter what we do, we can’t avert the crisis and that any recovery will have to come after same no matter what we try and do to bolster confidence in our dollar.

      imho

    • macperr

      I get social security check $476. a month -94.60 for medicare How much should I return to be a good unselfish female patriotic american? I never earned as much as men did doing the same kind of job, so my investment didn’t amount to much. Can I move in with you, and will you pay my declining health doctor/hospital/medical bills, rent, food, clothing for the next 15 years. Yes, 15 years if I live that long, which I doubt. That should made the democrats & Obama happy.

  • Finrod

    Setting: the inside of an airplane that is obviously descending rapidly. The passengers are all elderly people on some form of medical care. The outside of the airplane says: Medicare.

    The cockpit door slams open, revealing that there’s no one at the controls.

    Passenger 1: We’ve got to do something or else the airplane will crash!
    Naysayer 1: You don’t want to save the plane, you want to take it for yourself!
    Naysayer 2: You don’t really care about the people on this plane!
    Naysayer 3: Your plan is to kill all these people!

    Screen goes to black.

    Narrator: We wouldn’t tolerate this kind of nonsense in person, why do we tolerate it in politics? Tell your Congressman to support the Republican plan to save Medicare before it goes bankrupt and everyone loses their healthcare.

  • averagevoterdotcom

    Debtocrats.

    Deathocrats.

  • edintexas

    As Jeff pointed out, we can’t decline Medicare coverage. In fact, when you are about to reach 65 they send you a Medicare card for both Part A (hospital) and Part B (physician and other). We can refuse Part B coverage (which I did as I have perfectly good health insurance which doesn’t require that I have Medicare – at least not yet), but there is no way to refuse Part A coverage without, as stated, losing your SSA benefits.

  • groverc

    No one wants to not only cut, but eliminate Medicare and S.S. more than I, but Dick Morris has been hammering the point on TV and his Website — including this video, http://www.youtube.com/watch?v=iVhV8am6-0M — that it is unnecessary to deal with Medicare until the crisis actually hits (he feels the same about S.S.).

    Does he have something, when he says that Ryan’s plan won’t take effect until 2022, and therefore Republicans will throw away every election to the Left until then by threatening to cut Medicare?

    Now, his “argument” that Medicare and S.S. did not cause the current deficit is correct, but it’s a straw man — no one on our side is claiming that. And his remedy to pull those social net programs which have risen 50% per year the last two years back to 2008 levels is a good one.

    But is he correct that, despite the numbers above, the crisis can be dealt with later — and that Obama has successfully sucked the GOP into an issue that will lose them elections for 10 years?

    Believe me, I think Morris is cavalier when it comes to America’s future. But, would it be wiser to get the Congressional majorities and the White House first, and then deal with Medicare? I’m interested if there is an economically sound rebuttal to Morris’s argument that we concentrate on the current deficit evils now, and leave dealing with the coming crisis to the future.

  • mspector

    Mike thought the unthinkable, and yes we could just drop it. After all, the Dems have made the choice that to be cowardly and popular rather than bold and unpopular. Why don’t we do the same? Just say that we cannot pass a budget by ourselves and it’s obvious the Democrats have no intention of doing anything responsible, so let’s all just go together when we go.

    The upside would be that we could spend all our time hammering on what a miserable President has been, a topic on which we can make considerable headway.

    There’s a logic to it, but I guess the reason we don’t do that is because we have this weird notion that political responsibility means talking about the elephant in the closet. We want people to take this economic mess seriously and we want to look for some hope that we can solve it somehow, even if it takes a couple of decades.

  • brojohn2

    follow Ryan and his budget, which includes the needed fixes than to just let the ship sink. I think that if we take that course, just giving up and then talking about what a lousy leadership in Obama and Reid, we will not become popular, we will be seen as quitters. The moral imperative is to stand up, to continue to hammer at what we know to be right. Anything else is cowardice.
    Those who ended up in the House and Senate were sent there with a clear imperative. Fix what is wrong, and do so with Conservative values in your mind. I want us to stand and fight, not cower in the corner, or even worse be a quisling like the Senate Republican leadership seems to be. Cowards need to be sent home and replaced with those who will stand and fight for what is right.

  • rushbabe

    Decline Medicare. This baby-boomer fully intends to decline both Medicare and Social Security. I am planning on working and being a productive member of society until they carry me out feet-first. All you retirees out there, just thank me for supporting you.