02 May 2012
A Lose-Lose Proposition For Us Oldsters
Last week, Medicare’s trustees released their annual report on the program’s finances. The results aren’t pretty.
The new report “reinforces the need for serious reform,” The Heritage Foundation’s Bob Moffit explains.
Leaving the program unchanged requires either dramatic tax hikes or harsh cuts–immediately. “The 2012 report states that bringing Medicare Part A into actuarial balance would require an immediate 47 percent increase in the payroll tax or a 26 percent cut in Part A benefits,” he explains.
The Obama administration’s Medicare plans are a lose-lose for seniors, Moffit continues. “If the Administration’s crude strategy of payment cuts is successful, reduced access to care for seniors is virtually guaranteed. If the provider cuts are reversed, the Medicare financial condition simply worsens.”
From The Heritage Foundation.