In case you missed it: Yesterday the Medicare Trustees announced that Medicare is due to run out of funds 3 years earlier.
As someone who sat on the Trust Fund, here are the implications in a few tweets.
If interested in Medicare, feel free to follow.1/
usatoday.com/story/news/pol…
As someone who sat on the Trust Fund, here are the implications in a few tweets.
If interested in Medicare, feel free to follow.1/
usatoday.com/story/news/pol…
The trust fund are funds set aside when we pay payroll taxes to cover hospital care for seniors & ppl w disabilities.
When Obama became President, it was due to be depleted in 2018.
The ACA added 10 years to the life of the fund. Yesterday’s news is it lost 3 of those years.2/
When Obama became President, it was due to be depleted in 2018.
The ACA added 10 years to the life of the fund. Yesterday’s news is it lost 3 of those years.2/
Employment, wage increase, and sufficient taxes improve the life of the fund.
If wages don’t keep up with medical expenses or if employment lags retirees, this hurts Medicare. The actuaries judge our current policies accordingly. 3/
If wages don’t keep up with medical expenses or if employment lags retirees, this hurts Medicare. The actuaries judge our current policies accordingly. 3/
If nothing changed, the Trust Fund wouldn’t be empty in 2025. But it would mean that the reserves would be gone and one of two thins would have to happen: benefits would need to be cut or more money would need to be added.
This is where there is an important debate...
4/
This is where there is an important debate...
4/
There are things both parties believe, solutions historically favored by Republicans, and solutions historically favored by Democrats.
Worth reviewing simply for those with the interest...
5/
Worth reviewing simply for those with the interest...
5/
Both parties believe we should do a better job controlling medical costs. Obama years cut Medicare cst growth to 2% from 6% during GWB years.
But there is no silver bullet and the fund actuaries won’t credit new savings until proven. 6/
But there is no silver bullet and the fund actuaries won’t credit new savings until proven. 6/
The major differences are that Rs generally (Paul Ryan of note) believe that cutting benefits, or capping them, is the answer. Whether a voucher to replace the defined benefits, changing the age, or some other test. 7/
Democrats treat the promise of Medicare made in 1965 as a sacred promise and reforms should come from sufficient taxes on high earners and from reducing payments to “middle men” like insurers. 7/
This should not be portrayed as or dealt with as a crisis. It would be smart for the public to weigh in— in this election and more generally. Candidates should articulate their views.9/
If you believe like I do that the Medicare promise is sacred, and that a promise to allow Americans to care for their families should offered to everyone— and be done without effecting the Trust Fund, there are few more important divides between the political parties.
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