There is a lot of talk in Washington DC about the deficit. They talk about fixing the deficit by raising taxes or cutting ear marks. But the real problems with the budget are the fixed expenses involved in the entitlement programs. Programs such as social security and Medicare are both very good and necessary for people who are on them. However they are extremely expensive for the taxpayer and the government. Recently some congressmen have proposed an idea of raising Medicare deductibles. They said that Medicare could save money if they raised the deductible to $2000. This caused people to claim that they want old people to die and they are neglecting their promise.
Most people don't really understand how Medicare works. They do not realize that there is a deductible for Medicare Part A and a separate deductible for Medicare Part B. The $2000 deductible proposal was for the hospitalization or Part A portion of Medicare. The people who cry foul at the concept of increasing that deductible should know that the current deductible for Part A in 2011 is $1,132. So increasing the deductible less than 50% would help to keep Medicare solvent. I think this is a reasonable position, but it is politically impossible. But the impossibility of such a simple issue underscores the difficulty in having this discussion in DC.
The reason people don't know is because most people are on Medicare supplements that pay for the deductible. Some people are on Medicare Advantage plans that charge a daily fee per day in the hospital up to around $1000. If someone is on Medicare and a supplement, they will not have to pay the deductible at all. If the deductible is increased, their monthly premium would go up on the supplement, but it would not change the structure of the system as it exists today.
Raising the deductible on Medicare benefits is necessary for our nation to remain solvent. Most people would just have an increased monthly premium on their supplement plan. People who could not afford the increase in deductible could be given assistance if they need it. Before chastising a politician for suggesting a necessary solution that sounds bad, make sure you understand the issue that they are discussing. Increasing the deductible on Medicare is something that needs to happen to make sure that Medicare is available for generations to come. Medicare deductibles have been a part of Medicare since the beginning.
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