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The Benefit: State-of-the-Art Medical Care.
The Benficiaries: All retirees, for life.
Current Status: Medicare provides outstanding healthcare to our seniors, as it rapidly bankrupts our nation.
Cost: 1965: 1% of GDP 2010: 10% of GDP
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THE BENEFIT: “State-of-the Art Medical Care.” What we had considered state-of-the art medical care in 1965 does not even resemble today’s advanced care. In fact, 1960’s medical care more resembles medieval medicine than anything seen today. Such radical medical advancements inevitably bring enormous increases in cost.
1965: 2010:
Check-up with family Doc Every Doc a Specialist
Chest X-ray CT Scan, MRI & PET Scan
Gallbladder Surgery Cardiac By-Pass & Hip Replacement
Penicillin ($1 per treatment) Avastin ($100,000 per year)
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THE BENEFICIARIES: Those Darn Demographics! A simple review of the the demographics here points out the “beneficiaries” problem. We are now facing a huge increase in the number of beneficiaries, a marked increase in the number of years each will be receiving the benefit, and a shocking decrease in the number of current workers supporting each beneficiary.
1965: 2010:
16 workers per beneficiary 3.3 workers per beneficiary
Fewer retirees Baby Boomers retire (huge)
Short benefit (life expect: 70 yr) More years of benefits (expect: 79 yr)
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“DOC, GIVE IT TO ME STRAIGHT: AM I GONNA MAKE IT?”
Medicare, as we have known it, is clearly on its deathbed and cannot be saved. Our challenge, then, is to create a far leaner and more efficient program that will allow us to care for our citizens without bankrupting the nation.
We will simply have to decide what percentage of our GDP can be reasonably spent on healthcare, and then set that number as a fixed maximum. Period. Working backward from this number, terribly painful decisions will then have to me made, limiting both the benefit offered and the intended beneficiaries.
Limiting “The Beneficiaries“: This will be painful, but is easily implemented. The benefit will simply have to begin at a later age, and partial means-testing will be necessary.
Limiting “The Benefit” This will feel more like amputation without anesthesia. We simply have no choice but to “limit” components of health-care offered (let the chants begin: “Rationing!”…”Death Panels!“…). While such a change seems contrary to our very nature as Americans, facts are facts and numbers are numbers. We can either offer the world to everyone and destroy our country in the process, or we can redefine what a compassionate country can actually afford to offer its citizens, and simply offer our best..
Medicare, it was nice while it lasted. Rest In Peace.
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the politically challenged 