Government Spending

May 26, 2011 By Jesse Jacobs

Medicare Can’t Be the Third Rail

Did you know that baby boomers retiring today will receive more in benefits over the course of their retirement than they ever paid in Medicare taxes? http://bit.ly/mpA5zo  In fact, the Urban Institute projects that a married 66-year-old couple that paid $110,000 in Medicare taxes over its lifetime will receive about $340,000 worth of benefits. That one kernel on information indicates just how big a hole our entitlement system is in.

Here’s another: Medicare spending will increase from about 3 percent of GDP now to more than 8 percent by the end of this century. http://bit.ly/l4Tefn

Oh, and one more factoid: Most Americans don’t believe Medicare needs to be cut to balance the federal budget. Or Social Security for that matter. http://apne.ws/jnoKI4

That explains why it’s so difficult for politicians to find a solution to attack entitlement spending that is eating away at our federal resources and our financial future. One thing is clear: the status quo is unsustainable. In fact, by 2047 all federal revenues will be needed just to pay for Medicare, Medicaid and Social Security if nothing changes. http://bit.ly/QLiTO

So something has to change. Rep. Paul Ryan’s plan to convert Medicare into a federal premium support system has run into a political buzz saw and is giving Republicans second thoughts. But President Obama’s plan to cut drug reimbursements and ration care is unlikely to work either. Maybe it’s time to listen less to the polls and more to the facts and come up with a realistic plan that reduces the cost of Medicare for the 21^st century.

• Medicare

• Medicaid

• Social Security

Comments