reality the money goes into these trust funds from payroll withholdings. The
government then borrows the money to pay general expenses. It provides an IOU
to the trust funds. In essence the trust funds are broke and the IOUs are an
unfunded liability of the federal government..
“And since the
federal government borrows the surplus from both funds (Social Security and
Medicare) to pay other expenses, the only thing in those trust funds own
special, non-negotiable, interest-bearing IOUs.”
to pay Social Security and Medicare obligations the government shifts revenue
of current accounts into the trust fund accounts.
paying into Social Security and Medicare all those years thought they were
paying for a retirement annuity. The assumption was the money would grow with
wise government investments and those funds would be able to pay their promised
liability to seniors.
payments were really a disguised tax. As baby boomers become eligible for
Medicare and Social Security the obligation is increasing.
is reaching the point where more people are receiving these entitlement
benefits than the younger people who are funding them.
The logical result is the premium price for
Medicare coverage is scheduled to double in 2014. The deductibles for services are
scheduled to increase. The age requirement for eligibility is about to rise. Access to care is decreasing as physicians
refuse to take Medicare. Rationing of care is increasing as hospitals are being
forced to assume risk. No one wants to assume the risk of taking care of sick
people. Especially when they are not very good at evaluating the risk.
knows all of this. Nevertheless they turn away as the government either borrows
more or prints more money.
have been told by multiple administrations that citizens could not handle their
own Social Security or Medicare annuity very well. Therefore the government
must do it for them.
government has done an awful job managing our retirement annuities.
Security and Medicare Trust Funds must become real trust funds that grow in
value in the future or the government should hand control over to the people.
administration’s estimate is it costs 3 billion dollars a year. They are wrong. Ask any physician.
should physicians or hospital systems assume the risk of missing a diagnosis by
not doing a test?
emotional and financial consequences of a frivolous lawsuit can be devastating.
and fair tort reform will save the healthcare system around 500 billion dollars
a year. The 500 billion dollars is more
than 5 times the cost of the 85 billion dollar sequestration. The administration
is wasting 500 million dollars to protect the business of malpractice trial
congressperson saved 600,000 a year as Rand Paul did the deficit would be
reduced by $321 million dollars more a year. If all the cabinet positions and
their agencies tried to save money and were rewarded for saving money we would
start to make some progress in decreasing the deficit.