The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Political Asylum


Subject:  Re: WalMart Bails on Obamacare Date:  12/11/2012  4:27 PM
Author:  Goofyhoofy Number:  1844057 of 2206890

You are aware medicare is bankrupt, yes?

Actually, no. Make that NO.

I understand that is the meme over at Fox News and other places not significantly involved with "facts", but in the real world, NO.

As examined by the Columbia Journalism Review (not an expert on "medicine", but pretty good at discerning "factual analysis":)

The word “bankrupt” is high on Romney’s list of talking points, too. A Romney spokesperson told CNN, when it asked for a response to Clinton’s charges, “Medicare will go bankrupt in 2024.” That’s when Medicare trustees now say the hospital trust fund will have a money shortfall.

But is Medicare really going bankrupt? Definitely not, says CNN. The network is correct, and the point is crucial.

Now it is true that if overall health care costs continue to escalate at the rate they did under the "free market" systemm, then Medicare will be "bankrupt" by 2024. Of course "bankrupt" has a different meaning here, like Social Security it doesn't mean the same thing as when a company goes bankrupt and ceases to exist, it means that it won't be able to pay 100% of claims. It might pay 95%, or 87%, or whatever, but it will still exist - and that assumes several things, such as that there will be no savings from allowing the government to competitively bid for quantity discounts on widely prescribed drugs (something the George Bush legislation expressly forbade), or that there won't be other cost-bending changes in health care. And maybe there won't, I don't know.

But "bankrupt"? Not hardly.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us