Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Medicare Reform: It’s All About Who Pays Thomas R. Saving Director, Private Enterprise Research Center Jeff Montgomery Professor of Economics Texas A&M University Senior Fellow – National Center for Policy Analysis Immediate Past Public Trustee – Social Security and Medicare Trust Funds Private Enterprise Research Center Texas A&M University To Begin, Some Fundamental Facts 1. Seniors will continue to consume health care. 2. Health care providers will have to be compensated. 3. Mandated MIRACLES cannot finance senior health care. Private Enterprise Research Center Texas A&M University Medicare’s Future: Pre-ACA CBO-2009 General Revenues Payroll Taxes Premiums Private Enterprise Research Center Texas A&M University Medicare’s Future With ACA CBO-2009 Health Care Providers Premiums Private Enterprise Research Center Texas A&M University The Future of Senior Health Care: Pre-ACA Total Senior Health Care General Revenues Out-of-Pocket Private Enterprise Research Center Texas A&M University Senior Health Care’s Future With ACA Total Senior Health Care Health Care Providers Out-of-Pocket Private Enterprise Research Center Texas A&M University The Taxation Solution Private Enterprise Research Center Texas A&M University Federal Income Tax Increase Required to Fund Entitlements and Maintain the Rest of Government 130.4% 2050 2040 2030 79.8% 65.1% 2020 42.7% 12.4% Source: 2011 Social Security Trustees Report, CBO “The Long-Term Budget Outlook,” June 2009 and author’s estimates. Federal Income Taxes are estimated to be 10.7% of GDP, the 50-year average. Private Enterprise Research Center Texas A&M University Let The Elderly Pay Solution Private Enterprise Research Center Texas A&M University Medicare Premium as a Share of Projected Medium Earner Social Security Benefits Medicare Transfer is a Constant Share of Federal Non-Entitlement Revenues 175.1% 2050 2040 2030 96.4% 2020 71.6% 47.1% 21.1% Transfer fixed 2009 share of GDP from Table III.A2 2009 Medicare Trustees Report. Private Enterprise Research Center Texas A&M University The Means Testing Solution Private Enterprise Research Center Texas A&M University % of Elderly Denied Benefits to Balance Medicare Private Enterprise Research Center Texas A&M University Income Cutoff for Elderly Benefit Denial to Balance Medicare Budget $2008 Private Enterprise Research Center Texas A&M University The Effect of Proposed Reforms Private Enterprise Research Center Texas A&M University Medicare Reform and Unfunded Liability Percent of Federal Income Taxes 118.7% CBO 2009 2050 2040 2030 61.7% 2020 43.8% 25.1% 18.8% 74.7% 35.5% 24.2% Private Enterprise Research Center Texas A&M University 40.5% 41.2% 32.4% 27.0% 25.7% 22.9% 47.3% GDP Indexing 24.2% ACA 12.9% CPI Indexing Required Payroll Tax Rate After Medicare Reform % of Payroll Pre-ACA Premium Support GDP Indexed Premium Support CPI Indexed Out-of-Pocket Private Enterprise Research Center Texas A&M University To End, Some Fundamental Facts 1. Seniors will continue to consume health care. 2. Health care providers will have to be compensated. 3. Mandated MIRACLES cannot finance senior health care. Private Enterprise Research Center Texas A&M University