in an official statement reacting to the reports, Romney declined to describe the details of his plan. “Today’s report reminds us that Medicare must be reformed and strengthened or it will soon collapse,” he said. “President Obama has offered no serious plan of his own, preferring instead to attack and point fingers over problems he refuses to address. Mitt Romney has a comprehensive plan to preserve Medicare for today’s seniors while ensuring that it remains strong for future generations.”
Did you catch that? Romney says he has a comprehensive plan but it’s a big secret! But that’s not the mendacity that I’m referring to. President Obama did pass ObamaCare (or was that RomneyCare)? And Brian’s reporting also noted:
The good news is that the trustees believe the Affordable Care Act strengthened Medicare — and project, as they did last year, that the program won’t exhaust its hospital insurance trust fund until 2024.
Yes – there is uncertainty:
The Board assumes that the various cost-reduction measures — the most important of which are the reductions in the payment rate updates for most categories of Medicare providers by the growth in economy- wide multifactor productivity—will occur as the Affordable Care Act requires. The Trustees believe that this outcome, while plausible, will depend on the achievement of unprecedented improvements in health care provider productivity.
And we have heard that Romney as President will repeal ObamaRomneyCare which will worsen the Medicare situation. Are you thoroughly confused on Romney’s position now?
While the trust fund may not be exhausted until 2024, that does not mean there are no financial repercussions until then.
ReplyDeleteIn fact, the financial dynamics are the same at trust exhaustion, as they are when cash outgo exceeds cash income, as it has since 2008. General revenues are needed to redeem trust fund interest to make up the shortfall.
General revenues are needed to make up the cash flow shortfall at exhaustion.
Interest income is excluded, when accounting on a cash flow basis. That is why the trust fund can be growing, and, at the same time, have a negative cash flow, when interest income is included in total income, not total cash income.
Don Levit
Don - most personal savings account allow me to claim my interest income even when noninterest cash flow is negative. So your odd accounting reply makes little sense to me.
ReplyDeleteBut I guess it would make the Heritage crowd smile!