Will there be Social Security or Medicare after 2016?

Social Security and Medicare finances worsen
May 12th, 2009 @ 3:01pm
By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) - The financial health of Social Security and Medicare, the government's two biggest benefit programs, have worsened because of the severe recession, and Medicare is now paying out more than it receives.

Trustees of the programs said Tuesday that Social Security will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner.

Medicare is in even worse shape. The trustees said the program for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year's report.

The trust funds _ which exist in paper form in a filing cabinet in Parkersburg, W.Va. _ are bonds that are backed by the government's "full faith and credit" but not by any actual assets. That money has been spent over the years to fund other parts of government. To redeem the trust fund bonds, the government would have to borrow in public debt markets or raise taxes.

Treasury Secretary Timothy Geithner, the head of the trustees group, said the new reports were a reminder that "the longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be."

Geithner said that President Barack Obama was committed to working with Congress to find ways to control runaway growth in both public and private health care expenditures, noting the promise Monday by major health care providers to trim costs by $2 trillion over the next decade.

However, Republicans pointed to the newly dire assessments as evidence the Obama administration has failed to come forward with actual entitlement reform to close the funding gaps.

"Instead of getting existing public programs in order right now, some are saying we should create a new government-run health insurance plan," Sen. Chuck Grassley, the top Republican on the Finance Committee, said in a reference to the administration's health care proposals. "When we can't afford the public health plan we have already, does it make sense to add more?"

House Republican leader John Boehner said the trustees report "confirms what we already knew: Our nation cannot afford to continue this reckless borrowing and spending spree."

The findings in the trustees report, the annual checkup given the two benefit programs, did not come as a surprise. Private economists had been predicting that the dates the programs would begin to pay out more than they take in and the dates the trust funds would be insolvent would occur sooner given the economic recession.

The deep recession, the worst the country has endured in decades, has resulted in a loss of 5.7 million jobs since it began in December 2007. The unemployment rate hit a 25-year high of 8.9 percent in April.

Fewer people working means less being paid into the trust funds for Social Security and Medicare.

The Congressional Budget Office recently projected that Social Security will collect just $3 billion more in 2010 than it will pay out in benefits. A year ago, the CBO had projected that Social Security would have a much higher $86 billion cash surplus for the 2010 budget year, which begins Oct. 1.

The trustees report projected that Social Security's annual surpluses would "fall sharply this year," then remain at a reduced level in 2010 and be lower in the following years than last year's projections. The report said that the Social Security annual surplus would be eliminated entirely in 2016, reflecting increased demands from the wave of 78 million baby boomers retiring.

That means Social Security will have to turn to its trust fund to make up the difference between Social Security taxes and the benefits being paid out beginning in 2016. The trustees projected the trust fund would be depleted in 2037, four years earlier than the 2041 date in last year's report.

At that point, the annual Social Security taxes collected would be enough to pay for three-fourths of current benefits through 2083. To tap the trust fund, the government would have to increase borrowing or raise taxes because Social Security bonds exist only as bookkeeping entries.

While the government is obligated to redeem those bonds, it has already spent the excess Social Security collections over the years to fund general government operations, providing the trust funds with IOUs.

While the smaller surpluses that will begin this year will not have any impact on Social Security benefit payments, the government will need to borrow more at a time when the federal deficit is already exploding because of the recession and the billions of dollars being spent to prop up a shaky banking system.

Medicare's condition is more precarious, reflecting the pressures from soaring health care costs as well as the drop in tax collections.

Obama on Monday praised the pledge by the health care industry to achieve $2 trillion in savings on health care costs over the next decade, but it was unclear how much help those pledges would be in achieving Obama's goal of extending coverage to some 50 million uninsured Americans. The administration is pushing Congress to pass legislation in this area this year, preferring to tackle health care before Social Security.

The trustees report is likely to set off renewed debate over Social Security and Medicare. Critics have charged that the Obama administration has failed to tackle the most serious problems in the budget _ soaring entitlement spending.

The administration on Monday revised its federal deficit forecasts upward to project an imbalance this year of $1.84 trillion, four times last year's record, and said the deficits will remain above $500 billion every year over the next decade.

Vanishing Doctors

Vanishing Doctors
April 13th, 2009 1:16 pm | by Mike Miller | Published in Big Government, Health Care, Market Regulation, Politics, congress, law

D o w n s i z e r - D i s p a t c h

Quote of the Day: “Government cripples you, then hands you a crutch and says, ‘See, if it wasn’t for us, you couldn’t walk.” — Harry Browne (1933-2006), co-founder of Downsize DC

Subject: The not so mysterious case of the vanishing doctors

In case you missed it . . .

A survey by The Physician’s Foundation finds that nearly HALF of primary care doctors plan to reduce or eliminate their practices in the next three years!

The survey also gives the reasons . . .

* Too much non-clinical paperwork
* Difficulty getting reimbursed
* Too much government regulation
* Lack of time (caused by the above problems) to form patient relationships

These problems exist because the government has corrupted the nature of health insurance.

* Insurance is supposed to cover rare but expensive procedures
* But various government policies have made health insurance cover the medical equivalents of oil changes and tire rotations
* This means that most medical care is paid for by the government, or by insurance companies, and not by the people actually seeking the care
* This causes people to over-use medical services, and doctors to order questionable procedures
* That causes both insurance companies and the government to limit their costs by second-guessing every decision your doctor makes
* This burden of regulation leads to piles of non-clinical paperwork and difficulty getting reimbursed

But it gets worse. Health care prices are actually set by the government . . .

* The government funds HALF of all medical care
* This gives the government huge clout as the largest purchaser of health care
* The government uses this clout to limit what it’s willing to pay for every medical procedure
* The insurance companies use these government prices to set their own prices
* If these fixed prices are too low, shortages result, AND DOCTORS VANISH!

But that’s only the beginning . . .

If your health insurance is tied to your employer — if you risk catastrophe because losing your job means losing your health insurance — you can thank the government for that. Federal tax policies created the incentives that caused your health insurance to be tied to your job.

But if you don’t have employer-provided health insurance, and find coverage too expensive to buy on your own, you can thank the government for that too. State and federal laws mandate that insurance policies cover everything under the sun, making it hard to buy affordable major medical coverage.

The politicians could easily fix these problems by . . .

* Providing tax refunds for all health care expenses, including insurance premiums
* Allowing insurance companies to compete with different policies at different prices by ending mandates on what all health insurance must cover
* Funding Health Savings Accounts for Medicare recipients so they’ll have more incentives to be frugal

The solution to our health care problems is less meddling by the politicians, not more. The case of the vanishing doctors isn’t mysterious. The politicians did it, and they want to do more of what caused it!

Send your Congressional employees instructions asking them reduce their meddling in health care. Use your personal comments to mention the arguments in this Dispatch (you could just cut and paste if you want). If you’ve used our Educate the Powerful System before, do the following . . .

SEE MORE AT Liberty Maven

Thank you for being a part of the growing Downsize DC Army.

Jim Babka
President
DownsizeDC.org, Inc.

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Do You Pledge Your Allegiance to Obama?

This is something forwarded to me by a friend that is interesting, yet not surprising.

"Posted: January 20, 2009
9:25 pm Eastern

By Drew Zahn
© 2009 WorldNetDaily

In a new YouTube video produced by Oprah Winfrey's Harpo Productions, dozens of celebrities – television and movie actors, sports heroes, musicians and more – describe how they will pledge to "be the change" and "be a servant to our president."

The video opens with a quote from President Truman, "They say that the job of the president is the loneliest job in the world," something the celebrities plan to alleviate for Obama by pledging to pitch in through several causes.

Throughout the video, the celebrities pledge to support local food banks, to smile more, to be better parents, to work with the charity UNICEF, to "never give anyone the finger when I'm driving again," to help find a cure for Alzheimer's, to meet neighbors, to use less plastic, to plant 500 trees, to "be more green," to turn the lights off and to "free 1 million people from slavery in the next five years," among dozens of other pledges.

The purpose of all this pledging is summed up in the video's grand finale.
Actors Demi Moore and Ashton Kutcher begin the closing scene by saying, "I pledge to be a servant to our president and all mankind."

Then, as the scene pans out, the other celebrities joint the chant: "Because together we can, together we are, and together we will be the change that we seek."
By the end of the mass pledge, the camera has panned back to a mosaic of faces that morphs into a picture of Barack Obama's face with the words, "Be the change."

While many of the celebrity promises – such as drinking less bottled water or being a better mom – may seem innocuous, other pledges touch on controversial subjects. Actress Alyssa Milano, for example, pledges "to be the voice for those that have no voice," a concept claimed by many pro-life advocates.

Other celebrities touch on politicized issues like pledging to "advance stem cell research" or to "sell my obnoxious car and buy a hybrid."

Black athlete Michael Strahan, for example, pledges "to consider myself an American, not an African American."

And while several of the celebrities attempt to portray heartfelt emotion and others attempt to be funny in their pledges, tattooed celebrity Anthony Kiedis of the band Red Hot Chili Peppers may have been going for the shock effect.

"I pledge allegiance to the funk, to the United Funk of Funkadelica," says Kiedis. Later, while kissing his own biceps, he further declares, "I pledge to be of service [kiss] to Barack Obama [kiss]."

Near the end of the video, the celebrities took turns looking into the camera and challenging, "What's your pledge?"

Not surprisingly, viewer reaction and comments on the video have been widely mixed.
One cynical poster responds, "Why did it take Obama to get elected for these Hollywood libs to pledge? Be a better father? Why did you wait so long?"
Several others responded that the celebrity pledges were "inspiring."

One poster writes, "I pledge to not stop here, but to continue to engage the community in making my community, this state, this nation and this world a better, more beautiful place."

Another contributor, however, while not criticizing the effort to volunteer or improve America, nonetheless took exception to the celebrities promising to serve President Obama.

"I pledge to keep treating the President of the United States of America as the public servant that he is supposed to be," writes the contributor. "I pledge to attempt to correct anyone who thinks that we owe some allegiance to Barack Obama the man, rather than the country he is supposed to represent."

The poster concluded, "I pledge allegiance to the flag of the United States of America and to the Republic, for which it stands: one nation, under god, indivisible, with liberty and justice for all."

One of the comments is "And so now we see the rise of the Obama-nation of desolation spoken of by Daniel the prophet, standing where it ought not . . . . . . amazing, simply amazing"

Chronic Fatigue and Lyme Disease

Interestingly, in my research regarding Lyme disease, I have made a discovery. This discovery may not be much to someone who is not fighting the battle of the disease. This discovery may not mean much to someone who is not fighting the battle to gain awareness for testing. However, with both of those battles in my lap, I feel the following linked article to be a great discovery.

www.chronicfatiguesupport.com

As you read the article, you begin to realize that someone is acknowledging factors that others are not willing to acknowledge.

First, this comes from Chronic Fatigue Support.com. They are acknowledging that Chronic Fatigue may actually be Lyme disease.

Second is a statement that I have gathered from many locations and sources into one and this link seems to sum it up rather profoundly.

"The incidence of asymptomatic infection has not been adequately delineated. There appear to be substantial numbers of patients who remain asymptomatic, but reactivate their disease a number of months or years later, following trauma, pregnancy, a medical illness for which an antibiotic is prescribed, or other stresses, including psychological stresses. The Lyme OspA vaccine has appeared to reactivate Lyme disease in a number of individuals who knew, but some who did not know, they had prior Lyme disease. The mechanisms responsible for the reactivation of the disease have not been defined, but may include both molecular mimicry and underlying infection."

Third, that many in the medical field don't recognize that there is Chronic Lyme disease or Late-Lyme disease. In this article, they are refuting those claims.

"That chronic Lyme Disease actually exists, and is likely the most common form of the disease, is supported by epidemiologic studies demonstrating that 30-50-% of treated and untreated patients go on to develop a multisymptom disorder typical of, and indistinguishable from, fibromyalgia and chronic fatigue (1, 28). As with other multisymptom disorders, chronic Lyme disease is a clinical syndrome consisting of fatigue, arthralgias and myalgias,and other nervous system dysfunction(7).

Furthermore, the results of treatment studies appear to support the hypothesis that persistent infection is responsible for the chronic symptoms. It is likely that Lyme disease will serve as a useful model for other chronic multisymptom disorders. Whether the pathogenesis of "late" Lyme Disease differs from that of the chronic form of the disease remains to be established."

This last point is one that arguably could save the U.S. economy millions of dollars in healthcare costs, as well as saving lives and relieving stress of the individuals and families involved.

Sources:
Chronic Fatigue Support.com