Saturday, February 27, 2010

Medicare, Rep Ryan, and the Facts

In the Blair House Yalta Conference Rep Ryan stated:

Mr. President, you said health care reform is budget reform. You're right. We agree with that. Medicare, right now, has a $38 trillion unfunded liability. That's $38 trillion in empty promises to my parents' generation, our generation, our kids' generation. Medicaid's growing at 21 percent each year. It's suffocating states' budgets. It's adding trillions in obligations that we have no means to pay for it... If you take a look at the CBO analysis, analysis from your chief actuary...this bill does not control costs. This bill does not reduce deficits. Instead, this bill adds a new health care entitlement at a time when we have no idea how to pay for the entitlements we already have. What has been placed in front of [the CBO] is a bill that is full of gimmicks and smoke-and-mirrors. Now, what do I mean when I say that?

Well, first off, the bill has 10 years of tax increases, about half a trillion dollars, with 10 years of Medicare cuts, about half a trillion dollars, to pay for six years of spending. Now, what's the true 10-year cost of this bill in 10 years? That's $2.3 trillion. It does couple of other things. It takes $52 billion in higher Social Security tax revenues and counts them as offsets. But that's really reserved for Social Security. So either we're double-counting them or we don't intend on paying those Social Security benefits. It takes $72 billion and claims money from the CLASS Act. That's the long-term care insurance program. It takes the money from premiums that are designed for that benefit and instead counts them as offsets.

Without delving into all the details, I feel that this is as much of a distortion as those of the Democrats. Medicare is not an unfunded plan no less than any Government Bond is. Nor any whole life plan. The contributors to Medicare paid in on average 40% more than they will ever get back. The money was taken by the very same people now making the complaints. They now use current collections for current payments made upon past contributions which were themselves taken for other reasons. Rep Ryan is much of a sophist as any of the Democrats. He clearly demonstrates gross ignorance of the facts regarding Medicare.

Perhaps we should just start all over again this November, just elect anyone who has never held office and do what is done in New Hampshire, pay them $100 per year and give them free parking. That is it!