Thursday, September 6, 2012

Ending Medicare as we know it

It is important to remember that Social Security and Medicare are two very different problems re: govt debt.  The former is in hock because Congress spent all the money.  The second is a looming disaster because the benefits promised far exceed the taxes collected.  Warren Meyer provides the frightening graph of the numbers and explains:

As I have written before, the problem with Social Security is not a mismatch of taxes and benefits - it's simply that 40 years of Congresses have spent the premiums, and now they no longer exist to pay benefits.
The problem with Medicare is actually more difficult.  By these numbers, Medicare taxes are not even a third of what they need to be to pay for actual benefits.

The thing that will end Medicare as we know it is Medicare as we know it. 

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