Where is the 2014 Trustees Report? We have gone from April to May to June and now into July with no report yet released. What’s going on?
Well, the best I can determine is that the Administration wants to figure in its much touted positive effects of Obamacare on both Social Security and Medicare; essentially claiming overall lower health care costs and higher wages. I’d like to be at the meetings trying to convince the actuaries of all that theoretical mumbo jumbo.
Here is my favorite assumption:
“If employers see their costs for health insurance fall, they would have more money to spend on employee salaries.”
Talk about naive‼️ Does anyone know of any employer who has seen its health care costs decline or are likely to❓ Does anyone know of an employer not shifting more costs to workers in one way or another❓Does anyone know of any employer that has managed its health care costs and as a result gave its workers a raise❓
But the counter argument is interesting too. According to a new article in the New York Times, numerous studies show an increase in employer-provided coverage following an individual health insurance mandate. That hardly means more money for wages. In fact it means more lost revenue for the government.
Now with regard to Medicare, it means that the cost of each procedure or hospital stay must decline and the number of procedures performed must also decline or the payment for each procedure must decline. There is no way all that will happen in the foreseeable future, if ever‼️
All this is very important to the Administration, it needs to demonstrate slower growth in Medicare premiums, and better fiscal health for both Social Security and Medicare. It must deliver on the grand promises of Obamacare … it’s an election year ‼️‼️‼️
Supporters of the new health care overhaul believe it will have a favorable impact on both Medicare and Social Security, extending the life of both trust funds. The benefits would occur in large part through lowering health costs by expanding the pool of people buying insurance coverage. For Medicare, that would result in a direct benefit in lower medical bills while the boost to Social Security would occur in an indirect way. If employers see their costs for health insurance fall, they would have more money to spend on employee salaries. Higher salaries would mean a larger amount of wages that would be subject to the Social Security payroll tax. This year’s trustees report would represent the most authoritative estimate on the impact those changes will have on both Medicare and Social Security. The report will also estimate the impact the health care overhaul will have on the premiums that Medicare recipients must pay. Supporters of the overhaul believe those premium costs will fall.