‘Medicare for All’ Will Bankrupt the United States

Paul Gessing is president of the Rio Grande Foundation has written a good article summarizing some problems with Medicare and why “Medicare for all” would be a disaster.  They include:

  • “Medicare’s expected future obligations exceeded premiums and dedicated taxes by an astounding $89 trillion. That’s about 5 1/2 times the size of Social Security’s ($18 trillion) unfunded liability and about six times the size of the entire U.S. economy.” See also this post on Medicare insolvency.
  • “according to an Associated Press story late last year, the inspector general for the U.S. Department of Health and Human Services found that 70 percent of Medicare payments in 2008 for patient medical supplies for the elderly and disabled should not have been approved.”
  • A news story by MSNBC, based on an investigation by a subcommittee of the U.S. Senate Homeland Security Committee, reported that more than a billion dollars in claims were paid between 2001 and 2006 without valid medical diagnostic codes. The result has been a host of cases involving senseless waste.”
  • cost-shifting to those with commercial insurance: “when Medicare does try to cut costs, it usually does so by cutting reimbursements to doctors. This results in cost-shifting from the government onto the backs of private insurers, employers, patients, and most of all, doctors. The most recent data available show that Medicare alone shifted $48.9 billion in costs onto the backs of the private sector one year.”  Read more on the cost-shift from Medicare and Medicaid.

Read the whole article, ‘Medicare for All’ Will Bankrupt the United States.

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Filed under Medicaid/Medicare/SCHIP

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