Good News On Obamacare And Medicare
The Medicare and Social Security trustees issued their annual report last week. The headline was the good news that Medicare is now solvent until 2030, four years later than previously estimated. Drew Altman points out that there was even better news buried in the details:
* Contrary to conventional wisdom, Medicare appears to be outperforming the private sector. Medicare spending per capita rose at a 6.1% annual clip between 2000 and 2012 vs. a 6.5% growth rate for private health insurance. . .
* The ACA [Obamacare] is projected to cut $716 billion in expected increases to providers and insurers between 2013 and 2022. Despite claims that cutting payments to providers and private plans could make the sky fall, there is no evidence so far that the industry or beneficiaries have been adversely affected by the reductions. In fact, enrollment has been growing in the private Medicare Advantage plans, which were hit by the most severe and controversial reductions, and the gains are projected to continue.
Make no mistake, Medicare still will require reform in the near future. But the Affordable Care Act is helping and buying us time until we have a Congress that can tackle the issue responsibly.
Click here for reuse options!Copyright 2014 Liberaland
By: Stuart Shapiro
Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.
37 responses to Good News On Obamacare And Medicare
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Dwendt44 August 6th, 2014 at 17:15
Shhh, don’t tell the Republicans, their heads will explode.
Anomaly 100 August 6th, 2014 at 20:33
Then tell them!
m2old4bs August 7th, 2014 at 00:40
I’m with you on this! Yes, please … I wanna see some exploding heads!
Dwendt44 August 6th, 2014 at 17:15
Shhh, don’t tell the Republicans, their heads will explode.
Anomaly 100 August 6th, 2014 at 20:33
Then tell them!
m2old4bs August 7th, 2014 at 00:40
I’m with you on this! Yes, please … I wanna see some exploding heads!
Obewon August 6th, 2014 at 17:43
Further proof from the Trustees report that Government run Medicare’s mere 3% overhead costs rise 6.1% per year, is far more efficient than private HC costs rising +6.5% annually from 2000 to 2012 pre-ObamaCare.
* The ACA [Obamacare] is projected to cut $716 billion in expected increases to providers and insurers between 2013 and 2022! That’s half of CBO’s updated $1.5 T+ ACA savings.
Dwendt44 August 7th, 2014 at 00:29
Medicare is now solvent until ~2030.
Social Security is still, IIRC, solvent until ~2040.
Obewon August 6th, 2014 at 17:43
Further proof from the Trustees report that Government run Medicare’s mere 3% overhead costs rise 6.1% per year and is far more efficient than private HC costs rising +6.5% annually from 2000 to 2012 pre-ObamaCare.
* The ACA [Obamacare] is projected to cut $716 billion in expected increases to providers and insurers between 2013 and 2022! That’s half of CBO’s updated $1.5 T+ ACA federal deficit reduction savings.
Dwendt44 August 7th, 2014 at 00:29
Medicare is now solvent until ~2030.
Social Security is still, IIRC, solvent until ~2040.
SteveD August 6th, 2014 at 18:01
Both Social Security and Medicare are federal agencies. Depending on whether sub agencies are counted, there are between 700 and 1,300 federal agencies, among which are:
1. The White House
2. The U.S. Senate
3. The Secret Service
4. The Social Security Administration
5. The Supreme Court
6. The House of Representatives
7. The Mint
8. The Air Force
9. The Army
10. The Bureau of the Census
Of these ten federal agencies, how many are supported by a trust fund, which purportedly can become insolvent? Answer: Just one.
Yes, only one of these federal agencies supposedly is supported by a trust fund, and if that trust fund “runs out” of money, the agency supposedly would be insolvent. And that one agency is the Social Security Administration (of which Medicare also is a part.)
The truth is, the U.S. government became Monetarily Sovereign on August 15, 1971. It is sovereign over the dollar.
The unlike state and local governments, the federal government can create as many dollars as it wishes, whenever it wishes, and it can value the dollar at any level it wishes. That is the meaning of Monetarily Sovereign.
Given this unlimited ability to create dollars, the government never needs to ask anyone for dollars — not you, not me, not China. If federal taxes were $0 and federal “borrowing” also were $0, the federal government still could create all the dollars it needs* and pay any bill of any size.
Federal taxes (including FICA) and borrowing are obsolete relics of the monetarily non-sovereign days.
Clearly then, it is impossible for the federal government to run short of dollars, i.e. to become “insolvent.” It equally is impossible for any agency of the government to become insolvent, unless the government wished it.
The President knows it. Congress knows it. The media know it. No matter what happens to FICA,Social Security and Medicare cannot become insolvent, unless the President and Congress want them to become insolvent. Period.
* (The “argument” always shifts from the lie that the U.S. can’t pay its bills, to the admission that well yes, the U.S. can pay its bills, but this will cause inflation.
In short, “can’t-pay-its-bills” is a diversion. It’s a fake concern, that even the debt-hawks don’t believe, but still repeat.
Everything boils down to inflation — usually Weimar Republic or Zimbabwe type hyperinflation — which we never have had in our history.
Then we get to the inconvenient fact that since the beginning of the great recession, in 2008, the federal government has spent massively, and inflation has been low.)
arc99 August 6th, 2014 at 19:56
for the record, the above post is an unattributed copy/paste.
http://mythfighter.com/2013/06/03/how-aarp-helps-prevent-medicare-for-everyone/
mea_mark August 6th, 2014 at 20:14
Maybe that is why he is having problems posting. Good job and thanks. I would not of caught that at all.
Right Uppercut August 7th, 2014 at 10:40
Wow, that is shocking. You call sites that disagree with the commentator’s opinions questionable and you wouldn’t have caught unattributed copy/paste, also known as plagiarism. And you’re a mod here. Clearly, this site has integrity. (That was sarcasm in, just in case you wouldn’t have caught that either)
Additionally, the original comment in question shows a fundamental lack of understanding about how finance works. No, a government cannot just wish money into existence. Neither can it dictate the money’s value. The value of money is dictated by the market, and by how much of it vendors charge consumers for goods and services. If the government just started declaring that it had money because it says so, that money would not be accepted by foreign nations in trade. The U.S.’s ability to import would be eradicated. Basically, this guy has no clue.
mea_mark August 7th, 2014 at 14:10
The moderators do not check for plagiarism. Perhaps you are the one that does not understand fiat currency and how it can work in America. As long as there is faith in the currency money can be added to the supply. The question is how much can be added before it loses respective value.
mea_mark August 6th, 2014 at 20:01
A note from the moderator — your account and comments are coming in as spam. You have been flagged as a spammer, probably by right wing sites as bad news. Try and avoid sites that disagree with your opinions greatly if you wish to not have problems commenting. I, personally welcome your insight and would like to know what you have to say. Sometimes though comments that come in as spam just never get posted. It is true here as it is most places. You might want to have 2 accounts if you want to go to questionable sites.
mea_mark August 6th, 2014 at 20:12
If you are going to cut and paste, provide links where it came from and try and only cut and paste a part, or tease if you will, and let the reader go to the linked site. That may be why you are being flagged as spam.
arc99 August 6th, 2014 at 19:56
for the record, the above post is an unattributed copy/paste.
http://mythfighter.com/2013/06/03/how-aarp-helps-prevent-medicare-for-everyone/
mea_mark August 6th, 2014 at 20:14
Maybe that is why he is having problems posting. Good job and thanks. I would not of caught that at all.
Jonathan Dunkin August 7th, 2014 at 10:40
Wow, that is shocking. You call sites that disagree with the commentator’s opinions questionable and you wouldn’t have caught unattributed copy/paste, also known as plagiarism. And you’re a mod here. Clearly, this site has integrity. (That was sarcasm in, just in case you wouldn’t have caught that either)
mea_mark August 7th, 2014 at 14:10
The moderators do not check for plagiarism. Perhaps you are the one that does not understand fiat currency and how it can work in America. As long as there is faith in the currency money can be added to the supply. The question is how much can be added before it loses respective value.
mea_mark August 6th, 2014 at 20:01
A note from the moderator — your account and comments are coming in as spam. You have been flagged as a spammer, probably by right wing sites as bad news. Try and avoid sites that disagree with your opinions greatly if you wish to not have problems commenting. I, personally welcome your insight and would like to know what you have to say. Sometimes though comments that come in as spam just never get posted. It is true here as it is most places. You might want to have 2 accounts if you want to go to questionable sites.
mea_mark August 6th, 2014 at 20:12
If you are going to cut and paste, provide links where it came from and try and only cut and paste a part, or tease if you will, and let the reader go to the linked site. That may be why you are being flagged as spam.
Denise August 6th, 2014 at 21:06
if they were not out working to raise funds for their re-election, their heads would explode.
Denise August 6th, 2014 at 21:06
if they were not out working to raise funds for their re-election, their heads would explode.
Always Right August 6th, 2014 at 21:28
I don’t get where the good news is in Obamacare. The headlines are filled with rising health insurance premiums.
“Premiums for plans sold on the Affordable Care Act exchange next year will increase by an average of 13.2 percent.”
Read more here: http://www.miamiherald.com/2014/08/04/4271376/proposed-prices-for-health-plans.html#storylink=cpy
LA Times: “Health premiums soared, Insurance Commissioner Dave Jones says”
http://www.latimes.com/business/la-fi-insurance-rates-20140730-story.html
From New York: “Are your monthly health insurance premiums going up double digits?”
http://www.whec.com/article/stories/s3498730.shtml
My waitress last night told me she needs back surgery, but the deductible is so high she can’t afford to get it. She is not a rich person.
Obewon August 6th, 2014 at 22:32
In New York 2014 HC premiums dropped 50% to 70% without subsidies. That’s similar to most other blue state HC premiums dropping by about 1/3 while covering ALL children up to age 26, eliminating preexisting exclusions and lifetime care-caps.
People like Hannity’s devotees made-up all kinds of ‘stories’ that when fact checked proved the ACA in-fact saved them 50% to 70% too! “Inside the (GOP TV) lie machine: I fact-checked Sean Hannity on Obamacare” http://www.salon.com/2013/10/18/inside_the_fox_news_lie_machine_i_fact_checked_sean_hannity_on_obamacare/ That’s why 24 million to 29 million bought HC from HC.Gov and the state exchanges withing the first 4 months of 2014:) http://acasignups.net/
arc99 August 7th, 2014 at 00:03
It never stops. Every time a BS right wing talking point whether it is death panels, or passing the bill in the middle of the night or, no one signing up, or no one paying or, previously uninsured not being covered or increasing the deficit, etc. is proven to be the crock it is, you guys just come up with a new whine; each one less rational than its predecessor.
As near as I can tell, and I admit I could be wrong, 2015 will not be the first time in the history of western civilization that insurance premiums have gone up. I would have to ask, what would this waitress prefer? Would she rather have a rather high deductible of say $5,000 or would she rather have no insurance at all and be responsible for the entire $75K – $100K bill that would be typical for major surgery an a few days as a hospital inpatient.
Simply stated, for someone who is not rich, isn’t $5K for back surgery a heck of a lot more affordable than $100K? The people who fought tooth and nail against the unspeakable horror of extending health insurance to as many Americans as possible, are never going to admit they were wrong. All well and good. But when your argument is reduced to something as illogical as a high deductible being unaffordable, while making absolutely no mention of the cost of care paid 100% out of pocket, I think the debate is over.
Always Right August 7th, 2014 at 11:05
If you don’t have the money for the deductible, it doesn’t matter whether you have insurance or not.
I’m not sure which right-wing talking point you are referring to since the sites I read lean mostly left in their reporting. I guess we’ll find out in January.
arc99 August 7th, 2014 at 00:13
even in the LA Times article you cite, the insurance industry trade group has a different view
“The California Assn. of Health Plans, an insurer trade group, said in a news release that Jones’ criticism “fails to consider the fundamental changes to health insurance that caused some Californians to pay less and some to pay more for their health insurance and ignores other positive changes brought on by the Affordable Care Act.”
“Health plans are focused on working with Covered California to provide affordable premiums during the upcoming open enrollment period, while Commissioner Jones is looking backward,” said Charles Bacchi, the group’s executive vice president.
“His analysis doesn’t take into account subsidies, enrollees who are benefiting from the ACA, or acknowledge how the ACA has substantially expanded coverage and benefits while also changing the way premiums are priced.””
Always Right August 6th, 2014 at 21:28
I don’t get where the good news is in Obamacare. The headlines are filled with rising health insurance premiums.
“Premiums for plans sold on the Affordable Care Act exchange next year will increase by an average of 13.2 percent.”
Read more here: http://www.miamiherald.com/2014/08/04/4271376/proposed-prices-for-health-plans.html#storylink=cpy
LA Times: “Health premiums soared, Insurance Commissioner Dave Jones says”
http://www.latimes.com/business/la-fi-insurance-rates-20140730-story.html
From New York: “Are your monthly health insurance premiums going up double digits?”
http://www.whec.com/article/stories/s3498730.shtml
My waitress last night told me she needs back surgery, but the deductible is so high she can’t afford to get it. She is not a rich person.
Obewon August 6th, 2014 at 22:32
In New York 2014 HC premiums dropped 50% to 70% before any subsidies. http://www.nytimes.com/2013/07/17/health/health-plan-cost-for-new-yorkers-set-to-fall-50.html?pagewanted=all&_r=0 “pay $1,000 a month or more for coverage will be able to shop for health insurance for as little as $308 monthly.” That’s similar to most other blue state HC premiums dropping by about 1/3 while covering ALL children up to age 26, eliminating preexisting exclusions and lifetime care-caps, “Junk-Policies”, etc. And as of March, 2014 Consumers can keep their non-ACA compliant old HC policies through 2017.
People like Hannity’s devotees made-up all kinds of ‘stories’ that when fact checked proved the ACA in-fact saved them 50% to 70% too! “Inside the (GOP TV) lie machine: I fact-checked Sean Hannity on Obamacare” http://www.salon.com/2013/10/18/inside_the_fox_news_lie_machine_i_fact_checked_sean_hannity_on_obamacare/ That’s why 24 million to 29 million bought HC from HC.Gov and the state exchanges within the first 4 months of 2014:) http://acasignups.net/ ‘Your waitress’ is likely paid less than minimum wage before tips and probably qualifies for Medicaid subsidized HC up to 400% of poverty level income.
arc99 August 7th, 2014 at 00:03
It never stops. Every time a BS right wing talking point whether it is death panels, or passing the bill in the middle of the night or, no one signing up, or no one paying or, previously uninsured not being covered or increasing the deficit, etc. is proven to be the crock it is, you guys just come up with a new whine; each one less rational than its predecessor.
As near as I can tell, and I admit I could be wrong, 2015 will not be the first time in the history of western civilization that insurance premiums have gone up. I would have to ask, what would this waitress prefer? Would she rather have a rather high deductible of say $5,000 or would she rather have no insurance at all and be responsible for the entire $75K – $100K bill that would be typical for major surgery an a few days as a hospital inpatient.
Simply stated, for someone who is not rich, isn’t $5K for back surgery a heck of a lot more affordable than $100K? The people who fought tooth and nail against the unspeakable horror of extending health insurance to as many Americans as possible, are never going to admit they were wrong. All well and good. But when your argument is reduced to something as illogical as a high deductible being unaffordable, while making absolutely no mention of the cost of care paid 100% out of pocket, I think the debate is over.
Always Right August 7th, 2014 at 11:05
If you don’t have the money for the deductible, it doesn’t matter whether you have insurance or not.
I’m not sure which right-wing talking point you are referring to since the sites I read lean mostly left in their reporting. I guess we’ll find out in January.
arc99 August 7th, 2014 at 00:13
even in the LA Times article you cite, the insurance industry trade group has a different view
“The California Assn. of Health Plans, an insurer trade group, said in a news release that Jones’ criticism “fails to consider the fundamental changes to health insurance that caused some Californians to pay less and some to pay more for their health insurance and ignores other positive changes brought on by the Affordable Care Act.”
“Health plans are focused on working with Covered California to provide affordable premiums during the upcoming open enrollment period, while Commissioner Jones is looking backward,” said Charles Bacchi, the group’s executive vice president.
“His analysis doesn’t take into account subsidies, enrollees who are benefiting from the ACA, or acknowledge how the ACA has substantially expanded coverage and benefits while also changing the way premiums are priced.””
peacedreamer August 6th, 2014 at 23:35
ACA has not solved our healthcare payment system nor quality of care. Copays are still high for most people unless you receive Medicaid. Exclusions to care (services & treatments not covered) are still common, especially for elderly people. The healthcare consumer still has poor choices for care, poor or delayed access to care, & poor care when they do finally get it. There is an extreme shortage of doctors & nurses across the country as this generation of elderly have had accelerating needs. For baby boomers this will worsen unless core issues are addressed. It’s a great life if you don’t weaken or get sick in the US.
The main reason why our system had high ratings (was so good) in the 60s & 70s is not because the care system was actually excellent. It was because the care in the rest of the world was so lousy.
peacedreamer August 6th, 2014 at 23:35
ACA has not solved our healthcare payment system nor quality of care. Copays are still high for most people unless you receive Medicaid. Exclusions to care (services & treatments not covered) are still common, especially for elderly people. The healthcare consumer still has poor choices for care, poor or delayed access to care, & poor care when they do finally get it. There is an extreme shortage of doctors & nurses across the country as this generation of elderly have had accelerating needs. For baby boomers this will worsen unless core issues are addressed. It’s a great life if you don’t weaken or get sick in the US.
The main reason why our system had high ratings (was so good) in the 60s & 70s is not because the care system was actually excellent. It was because the care in the rest of the world was so lousy.