Issue Position: Medicare and Social Security

Issue Position

The problems with Social Security and Medicare/Medicare cannot be solved until we have tax reform in our Nation. Social Security and Medicare/Medicaid were very well funded until the thieves of Capital Hill looted the funds to pay for their own projects. It is useless to debate these issues until we overhaul the tax code and replace our system of immoral and ineffective tax policy with a consumption tax.

A major problem with these large social programs has to deal with the way they are budgeted in Washington. These large social programs do not have to be reauthorized on a yearly basis or go through the regular budget process, so there is no check against waste or overspending. These programs are not even examined to see where money can be saved or where money should be spent.

It is this incompetence that is ruining our country.

"Social Security. Social Security was created in 1935 to provide pensions to Americans age 65 and over. Old Age and Survivors Insurance is funded by a 10.6 percent payroll tax, split equally between employer and employee, on the first $102,000 earned-a level that is adjusted annu­ally for inflation.

Medicaid. Medicaid is a federal-state partner­ship, created in 1965, that provides medical care to 46 million low-income individuals. States run their own Medicaid programs, while Washington sets minimum eligibility and benefit standards and reimburses states for an average of 57 percent of all program costs. Approximately one-third of Medic­aid spending is on senior citizens, partly because Medicare does not cover most long-term care such as nursing homes. Overall, Medicaid finances 40 percent of all long-term care costs.

Medicare. Medicare was created in 1965 to pro­vide medical care to Americans age 65 and older. An average of just under $10,000 is spent annually on each of Medicare's 43 million participants.

Medicare has three main components:

Medicare Part A covers hospital and skilled nursing care. It is funded by a 2.7 percent payroll tax (split equally between employer and employee) on all income. For most enrollees, Medicare operates as a fee-for-service system, meaning that once the enrollee satisfies a modest deductible, Washington reimburses participat­ing health care providers for services based on a set payment schedule.

Medicare Part B covers physical and outpatient care. This optional program, in which most Medicare recipients participate, requires recipi­ents to pay a monthly premium set at approxi­mately 25 percent of total program costs, leaving the taxpayers to fund the remaining 75 percent

Medicare Part D is the new prescription drug benefit enacted in 2003. This optional program is funded mostly from general tax revenues, although enrollees pay a small deductible and monthly premium. Enrollees choose from com­peting private health plans, which are reimbursed by Washington."

http://www.heritage.org/research/reports/2008/03/a-guide-to-fixing-social-security-medicare-and-medicaid

There are 77 million baby boomers set to retire over the next decade. If Congress did not constantly loot the Social Security Trust Fund, these programs would work just fine. Since we cannot count on our elected thieves for much of anything anymore and in order to help cover these costs, I agree that the retirement age must be pushed back and benefits should be adjusted based upon income and living standards. Americans are living longer than ever before and it only makes sense to push back by their retirement age for benefits and if someone has enough to live comfortably in retirement and cover their own expenses, they should receive less in benefits. Also, younger workers should have an option to opt out of social security.

The FairTax will also eliminate the double taxation on Social Security.

Again, these issues will be dealt better once our current immoral health care system based upon profit is overhauled. We must look at nations like Germany in order to understand how a health care system can function properly while giving the greatest care to all and keeping costs low.

http://www.npr.org/templates/story/story.php?storyId=91971406

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