Asset Based Loan

Medicare Voucher System means Seniors lose more every year

The current Medicare Voucher system is being sold as saving Medicare.   This could eventually down the road could be proven true only if the current system is not overhauled and simply allowed to collapse under it’s own weight in the next 10 or 20 years.  Of course, Medicare will not be allowed to totally collapse on it’s own.    The government would reform it in some manner prior to that happening.

However,  if the Medicare voucher system is done anywhere near the way it is being proposed, there will be new hardships that Seniors currently do not face.

1) Senior have no idea how much of a Voucher, or “allowance” they will receive each year.

The politicians have talked a lot about how great Vouchers would be, but a safe bet is they will not willingly provide an estimate of how much Seniors will actually receive per year.      If recipients would receive $5,000 per year, many Seniors would not sleep nights knowing they will not receive anywhere near adequate coverage of costs for their needs.

2) Would Seniors receive Vouchers before or after the have Medical treatment?

If it is before, watch out.   Now people in Retirement are playing Russian Roulette with their health and maybe their life.    What if they need a surgery that will cost $20,000 in the private market and they only receive $5,000 from the Government in Vouchers?  Go back to work at 68 years old?    Seniors likely would be thrilled at the prospect of doing that.    Chances are a 68 year old will land a high paying job immediately.

The other alternative is not have the surgery.     Maybe the previous accusation that Republicans want the country’s health care system for Seniors to be “die sooner” may end up being true.

3)   Can any politician show how Seniors would not become Medically poorer every year?

Most private insurance companies have been raising rates close to, or more than double digits every year, and Medical costs overall rise far greater than the annual inflation rate.   The prospect that the Government would increase the amount of the Voucher they pay to Medicare recipients each year to match double digit increases in private health insurance and Medical care costs can only be described as a fantasy.

If the cost of the average private health insurance plan and medical costs rise 10% each year, and the Government increases the Voucher by 4% each year, Senior will lost 6% purchasing power every year.

This means that in roughly just one decade, medicare voucher recipients will only be able to purchase 50% the same Medical coverage and treatments than they were able to just a decade prior.

If the current Medicare system is unsustainable, the country needs to take a look at other Government programs to cut, and revenue increases to strike a balance.    No one wants to be 70 years old and unable to get the Medical treatment they need.    We have to be a better country than that.