One day, our grandchildren may talk about Medicare the way we talk about Bernie Madoff.
In May, Medicare’s trustees released their annual report on the program’s finances, and things are not looking good. The entitlement spent $12 billion more than it took in from taxes in 2023. Absent change, Medicare’s Part A hospital insurance trust fund will be exhausted by 2036.
Years ago, there may have been more than enough workers to cover the cost of Medicare for many fewer retirees — and sock away some extra in the accounting fiction that is the Part A trust fund. Those days are gone. Soon, Medicare won’t be able to collect enough in taxes from workers to pay for the benefits that retirees are redeeming. Sounds an awful lot like a Ponzi scheme.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
The Medicare doomsday clock ticks closer to midnight
Sally C. Pipes
One day, our grandchildren may talk about Medicare the way we talk about Bernie Madoff.
In May, Medicare’s trustees released their annual report on the program’s finances, and things are not looking good. The entitlement spent $12 billion more than it took in from taxes in 2023. Absent change, Medicare’s Part A hospital insurance trust fund will be exhausted by 2036.
Years ago, there may have been more than enough workers to cover the cost of Medicare for many fewer retirees — and sock away some extra in the accounting fiction that is the Part A trust fund. Those days are gone. Soon, Medicare won’t be able to collect enough in taxes from workers to pay for the benefits that retirees are redeeming. Sounds an awful lot like a Ponzi scheme.
Click to read the full article in Patriot News.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.