Lane 3

Dude, Who Spent My Lockbox?

Medicare was enacted in 1965 at a time when the US population was relatively young, expected life span was relatively low, and when medical technologies were in their infancy. Now we are facing a whole new scenario. Baby-boomers will start cycling into Medicare in 2011, our life expectancy is at almost 80 years and some pretty cool (and expensive) medical innovations are providing Americans with a higher quality of life.

Medicare expenditures (medical claims and plan administration) are expected to outstrip Medicare income (taxes and participant premiums) in the year 2017. Everything past 2017 is an unfunded liability.

Over the next 20 years enrollment in Medicare is expected to go from 46 million to 79 million. At the same time the ratio of workers to Medicare beneficiaries will decline from 3.7 to 2.4. With those kind of numbers you can understand why politicians in Washington are getting a bit anxious.

So as you watch President Obama’s speech tonight ask yourself, “Dude, who spent my lockbox?” The answer is the same people who want to take over the private health care system. You can identify them easily. They will be clapping when you hear the words “public option, co-op, exchange and single-payer.”

Do you want to entrust your health care to the same people who are building bridges to nowhere, funding studies on snail sex, etc – all with your lockbox dollars?

Keep in mind that these politicians want to average out the bankrupt Medicare plan with the profitable private sector system. Doing so will allow them to keep feeding at the trough for awhile longer.

What do you think? Is it really about providing health care to the uninsured? Or lowering premiums that private sector folks willingly pay? What’s the motivation?

P.S. – Expect the same thing to happen with Social Security and your fully-funded 401(k) plan.