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Gayle in MD
10-29-2009, 09:53 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Browse &gt; Home / Articles / Going Out of Business?
Going Out of Business?
A new ad goes too far when it says Medicare will be "bankrupt" in eight years.
October 7, 2009

Summary
A new health care ad from a conservative group claims that "Medicare will be bankrupt in eight years." That gives a false impression. The program does have huge financial problems, but thereís no reason to think itís going out of business as the word "bankrupt" implies. And the issue isnít new:

A government report the ad refers to says the trust fund for one part of Medicare Ė hospital insurance Ė wonít have enough money to pay all benefits in 2017. Medicareís physician and drug benefits will "remain adequately financed," says the report.
Government projections have found that the hospital insurance trust fund would face a shortfall "almost from its inception," according to the Congressional Research Service. But in many cases politicians have found ways to extend it. In 1970, for instance, the trust fund was expected to be insolvent in 1972.
The ad also claims that "some want to pay for health care reform with $500 billion dollars in Medicare spending cuts." Actually, the House health care bill, to which this refers, proposes a net cut in spending of $219 billion over 10 years.

Analysis
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http://www.factcheck.org/2009/10/going-out-of-business/

pooltchr
10-29-2009, 10:37 AM
So where is the lie. Medicare will be bankrupt. Nobody says it will go away, just that it will be bankrupt. The government will just print more money. It's the Obama way!

Steve

eg8r
10-29-2009, 10:56 AM
LOL, who can argue? Medicare is funded by the US Government which is already in debt $10 Trillion dollars. That is bankruptcy that only the blind Chinese are beginning to see.

eg8r

LWW
10-29-2009, 11:10 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pooltchr</div><div class="ubbcode-body">So where is the lie. Medicare will be bankrupt.

Steve </div></div>

It is a play on words to the sheep.

"BANKRUPT" is a misnomer. The US Medicare system will not walk into court and file bankruptcy in 8 years, or ever. The reason is that being a gubmint agency of a state which exists on fiat currency it has the power of the gubmint note printing press watching it's back.

What will happen is it will become "INSOLVENT" which is bankruptcy in the clinical consumer/corporate sense.

This will require one or more of the following to happen:

- An increase in taxes.
- An increase in the deficit.
- A reduction in benefits.

The entire point of health care reform is to pull private insurance funding into the system and forestalling judgement day to the next generation.

Adult leftists today are selfishly impoverishing their descendants in a shameful effort to cover for their collectivist lunacy.

LWW