Let's Expand An Already-Bankrupt System
More from the Chronicle: in response to this editorial chastising Sen. Joe Lieberman's opposition to expanding Medicare eligibility, I sent the following letter:
re: Say it ain't so, Joe
In advocating the expansion of Medicare to include 55-64 year-olds, the Chronicle editorialists seem to be ignoring reality; at the very least, they are certainly not reading the reports published by the Medicare program's own Board of Trustees, and apparently not reading their own editorials: while simultaneously calling Medicare a "proven, workable program" that is "praiseworthy" and "cost-effective", they note in "Biting the bullet" that cuts of $460 billion are necessary due to "inefficiency and waste".
The report of the Medicare Trustees (available at www.ssa.gov) does not paint a picture of Medicare as "workable" or "cost-effective"; rather, it states that "projected long run program costs are not sustainable under current program parameters" [emphasis added]. Again in 2009, Medicare is "expected to pay out more in hospital benefits and other expenditures this year than it receives in taxes and other dedicated revenues" — that is, Medicare isn't self-sustaining, but rather must rely on general fund tax revenues.
It defies common sense to expand a program that is running deficits under its "current program parameters" and has trillions in unfunded liabilities — a program that, were it a private business, would be seeking bankruptcy protection and face the ire of lawmakers and editorial boards.
Sincerely,
Dave Smith
Houston, TX







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