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Medicare Strengthened by Health Care Reform, Trustees Say

1 year ago
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Medicare is in better financial shape because of new health care reforms, which are expected to extend the life of the health benefits program by 12 years, a new report says.

The report -- authored each year by the trustees charged with monitoring the solvency of Social Security and Medicare -- projected that Medicare's hospital trust fund will remain solvent through 2029 – a dozen years longer than the same group projected a year ago.

Nonetheless, the projection falls short of what many Democrats predicted when championing the reform bill last year, and it also assumes Medicare physicians will take a 21 percent pay cut this fall -- a controversial change that may not happen.

The report also predicts that the Social Security trust fund will shrink enough by 2037 that it will not be able to pay retirees full benefits, according to the Washington Post.

Treasury Secretary Timothy Geithner conceded Thursday that "there is still work to be done" on both fronts.

The solvency of both Medicare and Social Security are being stressed by an aging baby-boom generation, increased longevity and the rapidly rising cost of medical care.

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23 Comments

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ettu

How many years did it take before everyone realized what an albatross was hung about the necks of the citizens with the FDR New Deal and Social Sercurity, or the LBJ Great Society and Medicare? You will feel the fallout of the Obama initiatives much, much, sooner. It will not be good.

August 06 2010 at 8:37 AM Report abuse rate up rate down Reply
andrc657

The health care reform law will have many positive aspects.

August 05 2010 at 8:41 PM Report abuse -2 rate up rate down Reply
Kenneth

This article leaves out and does not account for all the additional people that will be added to medicare and Medicaid since they will never be able to afford private medical insurance. I received a quote for a healthy family of three with todays rates at 879.00 per month. the insurance companies have almost 4 more years to raise their rates be fore this system goes into effect. Even at 879.00 per month a family making 80,000 per year would have a tough time making these premium payments forget a family only making 50,000. Watch the hospital and private insurance companies rates go sky high when the hospitals would be forced to treat people at government insurance rates.

August 05 2010 at 8:07 PM Report abuse +4 rate up rate down Reply
caddopecan

Of course, there is no mention of the quality of care, which is greatly reduced. Like all bureaucrats, they are primarily concerned with the bureaucracy, not the service provided.

August 05 2010 at 5:37 PM Report abuse +5 rate up rate down Reply
hioldman70

If the doctors take a 21% cut in payments! If the 500 billion does not come out! If the states do not win their cases at the Supreme Court! If you believe everything that you are told. The trustees who have been in place for some time have allowed all the fraud to take place without any effort to stop it. The raiding of SS by Congress.

These are the many things that stand in the way of SS's future. Congress is willing to spend the SS money but not willing to stand up and cut spending everywhere else. Now they say the will pay for the new jobs stimulus by reducing welfare to the states. So just who are they trying to help. The truth is they are only protecting Union members in order to do their political payback for the elections. This new jobs bill does nothing for those out of work but instead is a payout to the unions and their members.

August 05 2010 at 4:28 PM Report abuse +6 rate up rate down Reply
barney2022

If nothing else you should know the hole health care thing is a scam because of the slow pace of its implementation. So when things go wrong with it, there are fall guys and people to blame that are not even elected officials anymore. It really is a pretty clever scheme.

August 05 2010 at 3:40 PM Report abuse +10 rate up rate down Reply
barney2022

I thought the 21% drop in medicare pay to doctors took effect in June? This article says that is does not begin until the fall. Does anyone know if this is true and why? I can speculate but not sure...

August 05 2010 at 3:34 PM Report abuse +9 rate up rate down Reply
1 reply to barney2022's comment
muffin83e

No cuts until after the election.

August 05 2010 at 3:49 PM Report abuse +9 rate up rate down Reply
jspe7

Why are there posters who are complaining about this health care bill and Medicare in general, saying that they are actually being forced to sign up for Medicare when they reach 65 years of age? This is not true. You do not have to sign up for Medicare. No one is forcing you
However, I do hope that you do not get sick and you do not have Medicare-----you will be wiped out with one major sickness----either you or a loved one
Funny, but those that are so against these "big government" programs, have no problem using them when they need them. then "big government" is not so bad

August 05 2010 at 3:22 PM Report abuse -6 rate up rate down Reply
1 reply to jspe7's comment
truthforfreedom

You are probably speaking of my post below. I stated my position very badly. While, we are not technically, or legally forced to join medicare when we turn 65, what happens is that your existing health insurer reduces coverage which makes the person have to sign on to medicare because if you didn't you'd have a huge gap in coverage and it is funded by taxpayers, your money. That's what I should have said, instead of a blanket statement that we are forced to use it. You are correct in that, however, I take issue with the remainder of your statement. I would gladly opt out of medicare and will if my insurer reduces my coverage and on top of that, my tax dollars paid for medicare through social security, do I get reimbursed all those years of paying into it if I opt out. So, to me, I still feel forced.

August 05 2010 at 4:43 PM Report abuse -2 rate up rate down Reply
gtheel

They are slated to take upwards of 500 billion from Medicare to help finance this Bill. So please tell us how this is supposed to " Help " Medicare?

August 05 2010 at 2:33 PM Report abuse +8 rate up rate down Reply
1 reply to gtheel's comment
christierandall

congress is cutting medicare by 40 billion over the next 5 yrs.

August 05 2010 at 5:44 PM Report abuse +3 rate up rate down Reply
Jeff

I would not trust these trustee's. I assume they are the same people
who watched Congress raid both of these programs.

August 05 2010 at 2:16 PM Report abuse +8 rate up rate down Reply

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