Health care reform ain't for the faint of heart, and it's also an issue that I think will define the modern era of American politics. Having just renewed our small group health insurance with BCBSNC to the tune of a 28% increase in premiums I'm going to throw my two cents in and say that I agree that this is a defining issue for our country. Unfortunately I'm nowhere near smart enough to know what the solution to our health care issue is, but I also suspect that such a person doesn't exist considering the issue is so complex. Thus I think we're destined for an extended period of sausage making as we try to figure out a better mouse trap and that's why I'm not exactly surprised at what's going on in Washington these days.
From this Tax.com article on Rep. Ryan's proposed changes to funding for Medicare:
So what happens if we buy the Ryan plan? For those age 55 and older, not so much. But a lot changes starting in 2022, when today's 54-year-olds turn 65, through 2084, the end of the 75-year period covered by Social Security trustee projections.
David Rosnick and Dean Baker, economists at the Center for Economic Policy and Research, crunched the numbers. Whether you like their liberal views or hate them, Rosnick and Baker are just spreadsheet mechanics in this exercise.
Reduced to net present value, Ryan's plan would save $4.9 trillion in taxes from 2022 through 2084, the numbers reveal. That's not chicken feed. In fact, it is within range of the close to $6 trillion shortfall in Social Security between now and 2084…
So for every dollar Americans would save in taxes, they would shell out $5 more from their own pockets using Ryan's preferred baseline, and nearly $8 using the standard baseline. When you stack a plan in favor of its advocate and the additional costs are five times the savings, like the story of the mechanic trying to keep getting paid for fixing up a clunker, the plan should be greeted with laughter, derision, or disgust. I go for all three — in that order.
Rosnick and Baker call this net extra spending of between $20 trillion to $34 trillion waste. That's their political judgment. I'll stick to the facts: The Ryan plan shifts costs and raises them at the same time. Spending $5 to save $1 is nuts. Spending $8 to save $1 is lunacy. (Emphasis mine).
I've become so accustomed to getting smacked in the side of the head with healthcare expenses that I can't really say the numbers shock me at all, but I do find them disheartening. My family pays what I consider a healthy chunk of change just to insure ourselves against medical disaster, and we've been blessed with relatively good health so I don't even want to think about what that insurance would cost if we had real issues. That said I was hoping that I could pay the piper now and then some day have a "Medicare" party so that I'd at least be able to enjoy "Cadillac benefits" in my waning years, but I'm beginning to think that's a pipe dream.