Jena Ellis asked us to share an article that they just posted on her own blog called “7 Myths About Medicare”.
1. Medicare is an unearned entitlement: American employees “earn” the entitlement of Medicare by paying in to social security during their working years. Interestingly, this form of so-called “socialized” health care works exactly like private insurance: some customers pay more than they receive back, others get back more than they pay in.
2. Medicare’s budget is out of control: Medicare’s spending growth rate through 2019 is projected at 3.1%, more or less matching the growth of the U.S. economy, while spending by private insurers will increase 4.9%. In addition to being run more efficiently than private plans, Medicare spends much less on administrative overhead, including fighting fraud and abuse.
3. Medicare costs are out of control: Medicare has always and is projected to continue to cost significantly less per beneficiary than private insurance. While it is true that Medicare spending will increase as the number of senior citizens in the U.S. continues to grow, the program is expected to remain remarkably cost-friendly.
4. Market competition brings down the cost of private plans administering Medicare: Medicare Advantage is offered by private providers who are paid by Medicare as well as premiums and co-payments. It was believed that market competition among Medicare Advantage’s participating insurance providers would bring down the costs of health care plans, but anyone 65 or older will tell you that definitely did not happen.
5. Medicare is government healthcare: A socialized health care system would mean the government paid for all health care, employed all health care providers, and ran all of the country’s health care facilities. But the health care providers, pharmacies, and nursing homes that fall under Medicare’s coverage are all privately owned.
6. Medicare is going to be broke in 2024: While insolvency has been predicted for the Medicare nearly every year since 1972, various acts of congress and revisions to the program have managed to keep it solvent including the Affordable Care Act which keeps Medicare financially stable through 2024, and funding sources are in no danger of suddenly disappearing.
7. Repealing the Affordable Care Act will save Medicare: The Affordable Care Act greatly expands health coverage for Medicare beneficiaries. Repealing the Affordable Care Act will only send Medicare back to square one and take the latest life-saving benefits away from millions of Americans.