Medicare

I love how we define “bankrupt” when it comes to entitlements. Misleading people is good politics. 

Telling Americans the truth about Medicare and Social Security is not fashionable these days. The AARP and others mislead and create a false sense of security while intentionally hampering the ability to find solutions. 

Claim: We need to do this (make prospective changes): Medicare is going broke.

Fact check: Medicare has some financial challenges as the population ages and health costs increase. But it’s not going bankrupt.

The program has enough money coming in from payroll taxes and other sources to fully pay hospital insurance costs until 2028, according to the latest Medicare Trustees report. And even after that, incoming revenue would be enough to cover 87 percent of these costs in 2028, gradually decreasing to 79 percent in 2040. Source: AARP

Enough money to pay claims for nine more years‼️ Whoopee‼️‼️ If you are running out of money and your expenses are rising, you are headed for bankruptcy. The problem with the AARP and other groups and politicians is that they are incapable of taking a long-term view. 

For the last eight years and before nothing has been done to make Social Security and Medicare sustainable so to say Medicare will be okay until 2028 is foolish; that is only eleven years away. And as the Trustees have said of both programs, the longer we wait to do something, the more draconian the changes will have to be. 

The AARP and other organizations continually  mislead Americans about  Medicare and Social Security. 

Read what the Trustees said in their last annual report. It calls for changes. Changes that the AARP tells it members are not necessary. 

The financial projections in this report indicate a need for substantial steps to address Medicare’s remaining financial challenges. Consideration of further reforms should occur in the near future. The sooner solutions are enacted, the more flexible and gradual they can be. Moreover, the early introduction of reforms increases the time available for affected individuals and organizations—including health care providers, beneficiaries, and taxpayers—to adjust their expectations and behavior. The Trustees recommend that Congress and the executive branch work closely together with a sense of urgency to address the depletion of the HI trust fund and the projected growth in HI (Part A) and SMI (Parts B and D) expenditures.

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Categories: Medicare

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6 replies »

  1. If the HMO’s and doctors would stop charging such exorbitant fees to Medicare perhaps it would help. I receive a monthly statement from Texan Plus for my HMO fees that the Provider is charging and I am appalled at the charges they send to Medicare.and I thought my $35. was a lot to pay for a Specialist. Medicare is being soaked dry by these companies. some charges that I question as being valid fees for visits when they don’t do anything and refer you to another specialist, and costs for a simple injection of cortisone. I think the companies should be audited with the outrageous amount they are charging to Medicare for fees that are unacceptably high since when does an injection cost over $300 which is what they are billing Medicare! The RX’s are exuberant as well when you get get a RX for $4.00 without insurance and Medicare is charged 4 times that amount That never was so in the past!
    As for the comment above, It is not a matter of managing money as a senior, it is a matter of extreme increase in credit card rates over 25% that the government is letting the bank/creditors get away with (sometimes necessary to use when unexpected expenses such as car and house repairs come along and there isn’t enough in the budget to handle the cost.) My personal experience with no raise from SS this year due to the increase in Medicare, yet my car and auto insurance has gone up, with no control from State governments as to price increase. (My auto insurance went from 2016 an increase of over $25.00 a month for the same coverage with the government not putting controls on price raising and the companies say that we are paying for all the claims throughout the country.) On a senior budget, one can’t handle these large increases and it is not that we can’t manage our money, I pay all my bills on time, it is just that the income isn’t enough every month to make ends meet with unexpected expense and credit cards interest over 25% these days if one has to use it! Where is the government with trying to stop these high rates that eats away at a seniors monthly budget??

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    • Medicare determines what it pays, not the doctors. If a doctor or any provider bills above what Medicare allows, their fee is cut back.

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      • My doctor sent me to a medical supply company for a pair of compression socks I needed to wear on a long bus trip. I paid nothing and my insurance was billed $45. They paid the $45 for a pair of socks I can order from Amazon for $12. If I need any more socks I will by pass the doctor and save the office visit co-pay. Medicare and other insurance needs to look at some of these type charges and cut them back even more. If I want 6 pair I can get them for $25.
        6 x 45 = $270. No wonder insurance premiums are so high.

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      • Most people would rather see their insurance pay the $45 than pay $12 on their own. And you are right, that’s why premiums are high. But the real question is, why should such items even be covered by what we incorrectly call “insurance.”

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  2. It is not just entitlements that people are being mislead. There are TV commercials that claim if you own the IRS or your credit card companies you don’t have to pay them back if you call and use their services. These commercials use to infuriate me. I paid my taxes why shouldn’t everybody else. These commercials have been on for so long, I am starting to believe that there might be some true to them otherwise the FTC would have taking them off, right? Am I a fool to keep paying my taxes and credit cards? No.

    To me it seems like a large percentage of the population cannot manage their own money. They believe what they want to believe at that moment of time. If you are young, don’t tax me more for social security, if you are old, stop stealing the money. But nobody takes the time to read the fact for themselves.

    If everybody could manage their money there would be a lot fewer accountants in the world, but politicians do not listen to accountants they listen to voters and there is the problem. Tell the voters what they want to hear to get re-elected.

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