What's Wrong With Medicare?

How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents’ fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017 (after he would leave a 2nd term in office) When: By 2034 Savings: Savings: It would reduce Medicare costs by $1 trillion over ten years. $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Which party U.S. seniors trust will do a better job handling the Medicare program? Among all seniors (ages 65+) Among seniors by party ID Independants Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Total Medicare should: Among seniors by party ID By age 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare . Don't Know /Refused Keep Medicare as is Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All By party ID Among seniors by party ID By age 18-49 | 50-64 | 65+ Dem Ind Rep Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% 57% 46% 54% 54% 59% | 63% | 65% | 48% 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Among seniors by party ID By age 18-49 | 50-64 Dem Ind Rep 65+ Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% 42% 46% 56% | 43% 45% 63% | 51% | 64% 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% 17% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending" Social security spending Both programs combined 25 20 15 10 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Myth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Myth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more for their services. That's costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Myth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Myth: Social Security benefits are too generous. They need to be cut because we can't Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. afford them. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5.3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com ३ I| How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents' fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017. (after he would leave a 2nd term in office) When: By 2034 Savings: $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Savings: %24 It would reduce Medicare costs by $1 trillion over ten years. Which party U.S. seniors trust will do a better job handling the Medicare program? Among seniors by party ID Independants Among all seniors (ages 65+) Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Medicare should: Total Ву age Among seniors by party ID 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% 44/0 2270 What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare Don't Know Kееp Medicare as is /Refused Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All Ву рarty ID Вy age Among seniors by party ID Ind Dem Ind Rep | 18-49 | 50-64 | 65+ Dem Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% of How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Ву age Rep | 18-49 | 50-64 | 65+ Among seniors by party ID Dem Ind Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% | 42% 46% 56% 43% 45% 63% | 51% | 64% | 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% | 17% | 14% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending* Social security spending Both programs combined 25 20 15 10 5 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Мyth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Мyth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. their services. That's STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Мyth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Мyth: Social Security benefits are too generous. They need to be cut because we can't afford them. Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5,3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents' fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017. (after he would leave a 2nd term in office) When: By 2034 Savings: $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Savings: %24 It would reduce Medicare costs by $1 trillion over ten years. Which party U.S. seniors trust will do a better job handling the Medicare program? Among seniors by party ID Independants Among all seniors (ages 65+) Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Medicare should: Total Ву age Among seniors by party ID 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% 44/0 2270 What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare Don't Know Kееp Medicare as is /Refused Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All Ву рarty ID Вy age Among seniors by party ID Ind Dem Ind Rep | 18-49 | 50-64 | 65+ Dem Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% of How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Ву age Rep | 18-49 | 50-64 | 65+ Among seniors by party ID Dem Ind Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% | 42% 46% 56% 43% 45% 63% | 51% | 64% | 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% | 17% | 14% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending* Social security spending Both programs combined 25 20 15 10 5 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Мyth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Мyth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. their services. That's STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Мyth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Мyth: Social Security benefits are too generous. They need to be cut because we can't afford them. Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5,3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents' fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017. (after he would leave a 2nd term in office) When: By 2034 Savings: $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Savings: %24 It would reduce Medicare costs by $1 trillion over ten years. Which party U.S. seniors trust will do a better job handling the Medicare program? Among seniors by party ID Independants Among all seniors (ages 65+) Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Medicare should: Total Ву age Among seniors by party ID 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% 44/0 2270 What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare Don't Know Kееp Medicare as is /Refused Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All Ву рarty ID Вy age Among seniors by party ID Ind Dem Ind Rep | 18-49 | 50-64 | 65+ Dem Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% of How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Ву age Rep | 18-49 | 50-64 | 65+ Among seniors by party ID Dem Ind Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% | 42% 46% 56% 43% 45% 63% | 51% | 64% | 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% | 17% | 14% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending* Social security spending Both programs combined 25 20 15 10 5 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Мyth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Мyth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. their services. That's STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Мyth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Мyth: Social Security benefits are too generous. They need to be cut because we can't afford them. Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5,3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents' fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017. (after he would leave a 2nd term in office) When: By 2034 Savings: $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Savings: %24 It would reduce Medicare costs by $1 trillion over ten years. Which party U.S. seniors trust will do a better job handling the Medicare program? Among seniors by party ID Independants Among all seniors (ages 65+) Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Medicare should: Total Ву age Among seniors by party ID 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% 44/0 2270 What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare Don't Know Kееp Medicare as is /Refused Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All Ву рarty ID Вy age Among seniors by party ID Ind Dem Ind Rep | 18-49 | 50-64 | 65+ Dem Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% of How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Ву age Rep | 18-49 | 50-64 | 65+ Among seniors by party ID Dem Ind Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% | 42% 46% 56% 43% 45% 63% | 51% | 64% | 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% | 17% | 14% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending* Social security spending Both programs combined 25 20 15 10 5 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Мyth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Мyth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. their services. That's STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Мyth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Мyth: Social Security benefits are too generous. They need to be cut because we can't afford them. Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5,3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com How Americans Embrace Medicare Reform What's wrong with Medicare? Americans are spending more on Medicare than is coming in. Rand Paul states, "It's your grandparents' fault for having too many kids & then your fault for not having enough kids. It's a demographic problem." Republicans for reform Obama for change? Led by house budget committee chairman rand paul, republicans offer a proposal to cut future medicare outlays. Fiscal year 2013 budget plan. The proposal: The proposal: Raise the Medicare eligibility age from 65 to 70 & offer a “voucher" payment to eligible seniors for payment to a privatized health insurance company of their choice, leaving Medicare to federal employees. Those getting Medicare will pay more for their coverage, with premiums for higher- income people increasing by 15 %. When: Starting in 2017. (after he would leave a 2nd term in office) When: By 2034 Savings: $33 billion over 10 years (only 4-10ths of 1 % of total Medicare outlays over the next 10 years) Savings: %24 It would reduce Medicare costs by $1 trillion over ten years. Which party U.S. seniors trust will do a better job handling the Medicare program? Among seniors by party ID Independants Among all seniors (ages 65+) Democrats Republicans Democrats 43% 87% 33% 4% Republicans 36% 4% 27% 86% Trust neither (vol.) /Don't know 37% 19% 8% 10% What americans think of these changes: Medicare should: Total Ву age Among seniors by party ID 18-49 50-64 65+ Dem Ind Rep Continue 70% 67% 71% 76% 89% 74% 65% as it is today Change to a voucher system 25% 30% 22% 16% 5% 18% 22% 44/0 2270 What americans feel will happen to the quality of health care if the republican Medicare reform is passed Majority of americans prefer to keepMedicare the way it is. Change Medicare Don't Know Kееp Medicare as is /Refused Improved Total 70% 25% 11% 34% 23% Democrats 83% 14% Independents 71% 24% 33% Republicans 53% 39% Stay the same Worsen What americans think about Obama's Medicare reform requiring high income seniors to pay higher Medicare premiums Among all seniors (ages 65+) All Ву рarty ID Вy age Among seniors by party ID Ind Dem Ind Rep | 18-49 | 50-64 | 65+ Dem Rep Requiring only high income seniors to pay higher Medicare premiums 54% 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Unaware that wealthier seniors currently pay higher premiums than other seniors for Medicare coverage 86% | 83% | 88% | 88% | 85% | 90% | 84% | 86% | 82% | 87% of How americans feel about each proposal as a way to reduce the federal budget deficit Among all seniors (ages 65+) All By party ID Ву age Rep | 18-49 | 50-64 | 65+ Among seniors by party ID Dem Ind Dem Ind Rep Requiring only high income seniors to pay higher Medicare premiums 54% | 58% | 57% | 46% | 54% | 54% | 59% | 63% | 65% | 48% Gradually raising the age of eligibility for Medicare from 65 to 70 for future retirees 47% | 42% 46% 56% 43% 45% 63% | 51% | 64% | 75% Requiring all seniors to pay higher Medicare premiums 16% 10% | 16% | 20% | 15% | 15% | 17% | 14% 15% | 19% Myths & facts In the coming days and weeks we'l be hearing a lot of misinformation about the Trustees Report from the Social Security Administration. It's time to separate the myths from the realities: 1. Myth: "Social Security and Medicare have a cost problem." Fact: Medicare has a financial problem. As this chart shows, the cost of providing Social Security benefits is not out of control. Entitlements' growing share of economy (GDP) Medicare spending* Social security spending Both programs combined 25 20 15 10 5 2011 2085 Source: CBO; *Estimates assume many current policies are mantained, such as today's reimbusement rates or Medicare doctors Social Security is projected to be in a position to pay only 75% of benefits 20 years from now, but that's easily fixed by lifting the payroll tax cap. 2. Мyth: "Aging workforce strains Social Security, Medicare". Fact: What's "straining" Medicare today is the unequal distribution of income and a broken regulation for Wall Street. First, a radical upward shift in income toward the "1%" (and the "o.0001%" ) meant that more and more of the nation's income was above the payroll tax cap threshold. That reduced the revenue for Social Security (and Medicare) from a projected 90% of national income to a figure that's closer to 83%. Secondly, a financial crisis brought on by reckless and under-regulated Wall Street banks crashed the economy in 2008. Joblessness, along with wage stagnation for the "99%," further depleted the programs' revenues. 3. Мyth: We need to place limits on Medicare spending and cut its benefits. Fact: There has been an explosion of for-profit hospital chains in the last twenty years, along with other health providers. In addition, our system of reimbursing physi- cians provides an incentive for them to treat more and charge more costly and it subjects patients to a lot of unneces- sary tests. On top of that, the lion's share of our health economy is "managed" by for-profit insurance companies who have little motivation or skill when it comes to fiscal management. their services. That's STOP If we expand Medicare to our entire population we'd have a health system like that of all other industrialized countries, whose health costs are roughly 60% of our own and grow more slowly. Medicare's cost problem would be solved. 4. Myth: We can't get our federal deficits under control without cutting Social Security benefits. Fact: Social Security is forbidden by law from contributing to the federal deficit. It's an entirely self-sustaining program. If the day comes when it can't pay its full scheduled bene- fits, those benefits must and will be cut. This is a phony argument. 5. Мyth: Too many millionaires are collecting Social Security and Medicare, so we should means-test and deny it to them. Fact: The number of actual "millionaires" on Social Security and Medicare is tiny, by any objective measure. It wouldn't have any significant impact on their budgets to exclude them, although it would help a lot to tax them. What's more, Medicare and Social Security are social insurance programs. By definition, insurance shouldn't be means-testing like welfa- re and other aid programs, because you've already paid your premiums. The "means- testing" argument is often used to mischacterize these programs as "welfare," instead of what they really are: Something people have paid into through the payroll tax throughout their working lives, and (in Medicare's case) which they've also supported through their taxes. 6. Мyth: Social Security benefits are too generous. They need to be cut because we can't afford them. Fact: Our Social Security benefits are lower than those of nations that are economically similar to the US. As we said, the current reductions in revenue were caused by 1) an upward distribution of wealth to the "1%" and 2) a financial crisis brought by Wall Street greed and speculation. That suggests two possible solutions to Social Security's 20-year-from-now problem: 1) Lift the payroll tax cap, and/or 2) impose a small finan- cial transactions tax on Wall Street and use it to make up the Social Security shortfall. Either of these approaches would solve the problem. But those experts have failed, and failed spectacularly. In 1965, government experts projected that in 1990, on an inflation-adjusted basis, Medicare would cost $12 billion. In reality, Medicare in 1990 cost $107 billion. Oops. forbes.com Medicare wastes taxpayer money. Almost $107 billion in improper payments were paid between 1997 and 2003. In 2002, $13.3 billion was lost to improper payment. In 2010, $47.9 billion was improperly paid (HealthLeaders, 7/29/11). CCHF calculates the 2010 loss at $131 million per day. - chfreedom.org The number of persons enrolled in Medicare is expected to increase from 47 million in 2010 to 80 million by 2030.[24] While the same demographic trends that affect Social Security also affect Medicare, rapidly rising medical prices appear to be a more important cause of projected spending increases. CBO expects Medicare and Medicaid to continue growing, rising from 5,3% GDP in 2009 to 10.0% in 2035 and 19.0% by 2082. - wikipedia mostmedicare.com