- Dec 29, 2008
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As it is, Medicare is funded 100% from the Medicare Trust Fund which is funded by a separate tax which is so small most people don't even know that they pay it and Medicare premiums paid for by retirees from their social security benefits. Medicare does not receive any general tax revenues.
Knowing the shit-pile of money We, The People were able to accumulate and stash between 1935 and now for Social Security using the FICA tax (compare that to your Federal Withholding), I can only imagine the trust fund We could establish if we were to pool the health-care premiums that we and our employers pay into a similar fund.
Take out of the equation the dollars skimmed off of our health-care spending used for profits, executive bonuses, advertising and government lobbying efforts and it is no wonder the owners of the private insurance bureaucracies are spending a few billion to keep that gravy train to themselves.
-Joe
The last report I saw showed the Medicare trust would be empty in eight years and the Medicare taxes and premiums would then be insufficient to pay Medicare's bills. At that time Medicare can only be saved by either raising taxes/premiums, incurring larger deficits every year or by reducing coverage.
I never said it didn't need help, I said it was self funded - meaning it did not rely on the general tax revenues.
On a side note, speaking of re-building Medicare (or building a new system), the first step in making it fair and reasonable for all of us is for YOU to write YOUR CongressCritters and DEMAND that Federal Employees (including all CongressCritters) be participants in what ever health insurance system that they lay on the rest of us.
United States House of Representatives, 111th Congress, 1st Session
U.S. Senate
-Joe
In fact, it doesn't depend on revenues from its special tax, either. It has been charging artificially low taxes and premiums knowing that no matter how badly it mismanaged its finances, taxpayers would bail it out.
For most Americans the point is not to have a public plan regardless of how badly it will be mismanaged or how much it will ultimately cost. If they support it at all, it is because they believe they will get more for their money from it. But if a new public plan is configured as Medicare is, all of our experience tells us that it will be the beginning of a government monopoly on health insurance that will either raise our health insurance premiums, raise our taxes, increase our deficits every year or reduce our coverage.