NYT: Generational Divide Colors Debate Over Medicare’s Future

[dkf]

But beyond politics, Washington’s age bias depends on a basic misunderstanding of the budget — namely, that older people have already paid for their Medicare benefits.

They haven’t. For most Americans, Medicare resembles a giant welfare program. They receive far more in government benefits than they ever pay in taxes and premiums. The gap for a typical household runs to several hundreds of thousands of dollars.

Snip

Their results show that no cohort of Americans, with the possible exception of the very affluent, pays enough I Medicare taxes and premiums to cover their costs. The gap is growing over time, too.

Two married 66-year-olds with roughly average earnings over their lives will end up paying about $110,000 in dedicated Medicare taxes through the payroll tax, including the portion their employers pay. They can expect to receive about $340,000 in benefits. Two average-earning 56-year-olds will pay about $140,000 and get back about $430,000 in benefits.

http://www.nytimes.com/2011/04/06/business/06leonhardt.html

[FrenchieCat]

1. So the media propaganda for the GOP begins......

Can anyone say "Death Panels"?

[dkf]

4. Why would the GOP talk about "death panels" if the cuts are their proposals?

If anything we are the ones attacking their proposals as "heartless".

[abelenkpe]

2. Wow.

If republicans want to alienate all voters under the age of 55 well bravo. Well done.

[dkf]

5. The tradeoff will be increasing Medicare payroll taxes but I guess that is a good deal

As you can pay $200,000 in extra taxes and still be even.

[leftstreet]

3. Dems need to get out in front of this and campaign on slashing Medicare

:eyes:

[FrenchieCat]

6. That would be us, no?

Or should we wait for someone else to do it?

I'm writing to my local papers tonight.....

[slipslidingaway]

12. Breaking news ... the baby boom generation begins to use Medicare...

this year and the Dems did not realize it until now!

[Wilms]

7. Given the declining income of the little people, is it a wonder they only pay taxes so much?

:shrug:

[dkf]

8. But it looks like the vast majority receive more than they pay.

When you have a lot more young people paying for a small amount of older people that can work. But when there are less young people paying for more elderly, that means taxes on the young need to be increased. It's not only what people receive, but what other people pay.

Will your kids get to save enough for your grandkids education if they have to pay more and more for your medicare?

[Wilms]

10. My point is that increasing income for average workers yields greater tax revenue.

I don't know how far that could be hoped to go. People working past 65 strain the job market, so that might help little. And in some cases, doctors and patients might let up on the tests a bit. Hell, how much does over-medication cost in money and lifespan?

[dkf]

13. 50% of a persons entire health costs are incurred in the last 2 months of life.

People hate the death panel idea but sometimes we need to accept the inevitable.

[arendt]

9. Translation: Let's you and him fight. Divide & conquer. n/t

[slipslidingaway]

11. knr - who did not see this coming ...

but they waited until we had the HC subsidy bill passed before bringing up the Medicare costs ... and then those boomers just suddenly materialized to put a strain on the system.

Just maybe we should have addressed all HC costs in the debate over the last couple of years.

:eyes: