KRUGMAN: 'those assurances about how nobody currently over 55 will be hurt turn out to be empty'

April 5, 2011, 10:27 AM
The 2022 Medicare Crisis
Paul Krugman
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If the Medicare Advantage precedent holds, what will happen in 2022 or a bit later is that Congress will react to the fury of younger seniors — who see that those born just a few years earlier have vastly better benefits than they do — by increasing the vouchers. And the end result, in that case, would be that the Ryan plan substantially increases Medicare costs; remember that the payment increases that were part of the 2003 Medicare bill, introduced to rescue failing Medicare Advantage programs, have resulted in large overpayments, adding hundreds of billions to the program’s costs.

Alternatively, if the benefit cuts stick, you’ll have a lot of furious people realizing that they are paying high taxes to support lavish medical care for older Baby Boomers, while being themselves condemned to pleading with insurance companies to provide coverage in return for an inadequate voucher. Plus, private insurance companies, making lots of money off the voucher business, will cast their eyes on those potential profit centers, aka seniors, still getting government insurance. So traditional Medicare will be in the firing line — and all those assurances about how nobody currently over 55 will be hurt will turn out to be empty.

http://krugman.blogs.nytimes.com/2011/04/05/the-2022-medicare-crisis/

and can not see past their own pockets

...working with their allies, The Republicans, have already been successful at planting the seeds for the destruction of SS & Medicare.

*Medicare defunded by $500Billion through the "historic" Health Insurance "reform" Bill.

*The "Payroll Tax Holiday" directly connects SS Funds to General Funds.

:hi:

eventual fall of Medicare by setting up an unstable conflict between two opposing camps of Medicare clients, setting them up against each other because of unequal benefits.

Anyone who thinks that this is a good idea, and doesn't see the problems and conflicts this will cause, is a clueless fool.

i will be screwed. in fact i fully expect to be screwed and work until i die.