Medicare faces a dismal future that could threaten its very existence. In two recent papers, Stuart Butler, Ph.D., and Robert Moffit, Ph.D. of the new Heritage Center for Policy Innovation analyze the problem and offer detailed solutions on how to reverse course. Butler explains that many objections to Medicare reform are fueled by myths. For instance, many Americans believe that seniors have paid for their own Medicare through payroll taxes. But in reality, only Medicare Part A is financed through payroll taxes. Parts B and D are voluntary and financed …
In January 2012, Medicare physicians face a 27.4 percent cut in their payment for treating senior and disabled citizens. Congress, as it has routinely since 2003, is feverishly preparing legislation to stop its own goofy Medicare payment formula from going into effect. If they don’t succeed this year, seniors can be assured of severe problems accessing physician care. The reason Congress goes through this silly routine almost every year is that it is unable or unwilling to make serious changes in the Medicare program. Today, Medicare payment for doctors is …
Click here to join us right now for our “Lunch with Heritage” chat with Health Policy Analyst Kate Nix. The Obama Administration recently said that part of Obamacare, the CLASS Act, would no longer go into effect. Also, in a speech at Heritage yesterday, Paul Ryan mentioned the need to reform Medicare. Join right now as Kate takes your questions about the CLASS Act, what it means for the future of Obamacare, and how Medicare should be reformed. Lunch with Heritage feat. Kate Nix
When it comes to the super-committee’s duty to reform Medicare, you’ll likely to hear the same tired and unsuccessful methods for lowering Medicare’s soaring costs: raising taxes, manipulating payment formulas, or making even deeper payment cuts to doctors and hospitals. The best way to reform Medicare is transform it into a premium-support program, which provides a defined contribution to seniors’ chosen health plans, which include a variety of private plans as well as traditional Medicare fee-for-service. This approach — based on injecting consumer choice and competition into Medicare — has …
Medicare—on its current path—cannot be sustained. At a recent hearing held by the Senate Special Committee on Aging, Ranking Member Senator Bob Corker (R–TN) stressed the importance of Medicare reform. According to Corker, in 2011, “The U.S. spent $572 billion on Medicare, and spending is projected to increase to $1 trillion in 2021.” The relationship between the amount citizens pay in to Medicare and the benefits they receive presents another losing equation for taxpayers. If an average couple combined makes $87,000 a year, they will pay $119,000 (including their employers’ …
If the goal is producing $1.2 trillion to $1.5 trillion in 10-year savings, the Joint Select Committee on Deficit Reduction must think big and produce recommendations with real substance. Nothing could be truer than dealing with the health care savings component. Typically, these negotiations are so focused on reaching the savings target that the policy gets neglected, or worse hijacked in the wrong direction. One only needs to look at the 1997 Balanced Budget Act to see this in action. Yes, a Republican Congress and Democratic administration were able to join …
In its latest video railing against reform of Medicare and Social Security, AARP pushes for a pinch hitter to solve Washington’s spending problem—and a poor one at that. The organization charges Congress to cut wasteful spending and close tax loopholes instead of reducing Medicare and Social Security benefits. Once again, they get it wrong on how to balance the budget and put the nation on a fiscally sustainable path. Congress can work to eliminate waste, fraud, and abuse to demonstrate it is serious about controlling spending and using taxpayer dollars …
Driving the conversation: President Obama released his deficit reduction plan on Monday, which would reduce the national debt by $3 trillion over ten years through a variety of tax hikes, superficial cuts to Medicare and Medicaid, and by incorporating savings gleaned from drawing down America’s military presence in the Middle East. Taxes: As he is wont to do, Obama called on Congress – specifically, the supercommittee – to reform the tax code. The only tax changes included in the president’s plan are – surprise! – tax hikes. Those will include …
In its yearly survey of health insurance coverage, the U.S. Census Bureau published figures that underscore the trend toward greater dependence on government for coverage. The percentage of Americans on government health programs continues to grow, while employer-based coverage continues to decline. According to the latest Census report, 31 percent of the population received coverage through the government in 2010 compared to 23 percent in 1987. In contrast, 64 percent of the population had private coverage in 2010, compared to 75.5 percent in 1987. Employer-based coverage declined from 62.1 percent …
Last week’s presidential debate at the Reagan Library elevated Social Security as a national issue that could reshape the 2012 campaign. Candidates spent the week trading blows about the role of the 76-year-old social insurance program. Leaving aside the political rhetoric, one thing is certain: Social Security needs to be reformed or America will face a dismal future. As one of the three major entitlement programs — along with Medicare and Medicaid — Social Security is contributing to a very dire long-term budget outlook. Spending on the three entitlement programs …
