Monday, April 11, 2011

Saving Medicare For Future Generations

The first of the Baby Boomer generation began turning 65 years old last January.   That means that these Americans became eligible for Medicare, the senior citizen health care program that has been in place since 1965.   When Medicare was enacted as part of Socialist President Lyndon Johnson's Great Society Program, it was projected to cost a third what it actually costs today annually.   So the Congressional Budget Office that usually scores new entitlement programs blew it big time; but that is nothing new.   Medicare as we know it today is headed for bankrupcy in about nine years.   Unless there are major changes to Medicare, it will not be there for future generations and everyone knows it including all Socialists in Washington DC.  

Of course, Socialist President Obama will introduce his budget plan and rather than deal with entitlement programs, he will make the whole story about raising taxes on the "rich", which absolutely will not solve the problem.   With the Socialists it is always the class warfare argument; basically the same old song they have been signing since Woodrow Wilson's Presidency.  However, the "rich" have paid and paid and paid for their Medicare benefits since the program was enacted because there is no limit on Medicare contributions.   So if someone "rich" earned $10 million dollars during 40 years of work, more than $300,000 would have been paid for Medicare contributions over the 40 year period.   Assuming some reasonable interest rate was earned on this money, certainly $300,000 would compound to $600,000 or more.   Assuming the average person lives to 85 years old and Medicare is in place for a "rich" American, if an insurance premium was $15,000 per year, which is about double current Medicare Advantage Premiums, the cost to actually insure this "rich" American would be about $300,000 for 20 years.   That means that the government will have confiscated an extra $300,000 and probably much more than is actually needed to provide a "rich" American Medicare coverage. 

Yet, the Socialists always claim that the "rich" do not pay their fare share, which is just plain and simple a BIG LIE designed to use class warfare to win elections.   That said, the way to save Medicare is to provide all senior citizens the Medicare Advantage HMO program as the base plan through private insurance companies.   This Blogger's Mother along with 22 million other senior citizens are currently on this program, which is being eliminated by ObamaCare.   As such, in the future if ObamaCare is not repealed, senior citizens who have Medicare Advantage now will be forced to buy Medigap insurance to get the same coverage they have now, however, they will need to pay an additional $300 - $500 a month to get this level of coverage.   Most people who chose Medicare Advantage did so because they could not afford Medigap insurance, which means they will be stuck with plain Medicare; fast becoming another welfare program for the poor.  

In any case, the Medicare Advantage HMO should be the standard program.   Those below the poverty line should get it for free.  Others should pay 10 - 30% of the premium based on their total assets, for either this HMO program, or if chosen for a PPO program to get more choices and avoid the need for a gate keeper primary doctor.  And, even though the "rich" have paid for this insurance coverage many times over, the presumption is that they would end up paying 30% of the Medicare premium anyway because contrary to Socialist popular belief, the "rich" are not the greedy, evil people they are portrayed to be to win elections.   This plan would save Medicare and rely on competition to bring down insurance costs rather than ObamaCare that is a giant government scam and scheme.   

It is doubtful that the Socialists will support this common sense free market approach, which is just one more reason we must sweep them out of office in 2012 and 2014 to prevent the bankrupcy of our nation.   We have to complete the job we started in 2010 and make Obama a one term President.   We can do it.   We must do it to preserve our freedom, our way of life and nation for the sake of our children and grandchildren

No comments:

Post a Comment