Medicare: Fact vs. Fiction

The primary topic of recent conversation in the world of politics has been the candidate’s different views on fixing Medicare.  And as usual there has been a ton of misinformation produced primarily by campaign attack ads.  So we thought it might be helpful once and for all to set the record straight and tell you the truth about Medicare. 

This is not a partisan dissertation.  These are the facts as derived from multiple independent/bi-partisan sources.

Let’s start with the most recent accusation flying around today; that the President “stole” $716 billion from Medicare to pay for “Obamacare.”  That statement is simply and factually not true.

The President’s Affordable Care Act takes $716 billion in SUBSIDIES currently paid to private Medicare Advantage Plans and uses the money to close the so called “doughnut hole” that causes seniors to pay their prescription drugs.  That money goes toward eliminating co-pays for preventative care for seniors.   Medical experts are unanimous in their findings that access to preventative care allows for treatment of illness and disease in the earlier stages thereby reducing the need for more extensive, invasive and expensive treatment later.  “Obamacare doesn’t steal from Medicare.  It takes the money from PRIVATE INSURANCE PROVIDERS and gives it back to the TAXPAYERS to use for prescription drugs and preventative care.

“Obamacare” also uses some of the savings bring provide access to affordable health care for 30 million previously uninsured Americans.  These uninsured folks use hospital emergency rooms as their primary health care provider.  Local ER’s are the most expensive means of treatment provided under our healthcare system.  The cost for caring for these 30 million uninsured is passed on to the paying customers through increased fees and higher premiums.  Obamacare requires those that can afford health care to buy it or pay a fine.  It provides premium subsidies to those who are financially challenged.  By pulling these people out of the ER’s and onto the paying health care rolls Obamacare adds another layer of cost reduction to the existing system.

Obamacare also allows individuals to maintain their coverage even if they lose their job.  It makes it illegal for insurance companies to deny coverage on the basis of pre-existing conditions and prohibits insurance companies from cancelling coverage for pre-existing conditions as well.  It allows children to remain on their parents’ policies until they reach the age of 26 and it eliminates annual caps on benefits.

Romney’s plan makes the same $716 billion in cuts.  But it uses the money to partially privatize Medicare for those less than 55 years of age.  Those 55 and older will receive the same Medicare benefits they do today.  Those under 55 will receive a lump sum payment.  They will use this payment to buy insurance through a number of private plans or from Medicare itself.  If the lump sum payment proves insufficient to cover their medical expenses they will be expected to pay them out of pocket. 

It is important to note that Romney has said on numerous occasions that he will repeal “Obamacare” if elected.  Therefore all the “Obamacare” protections against discrimination and cancellation for pre-existing conditions will be eliminated.  As a result, under the Romney plan seniors who typically have some sort of pre-existing condition will be expected to obtain affordable healthcare with the finite “voucher” or “premium support payment” issued by the government. 

Independent analysts have found that the Romney Plan would require seniors to pay significantly more for their health care...some saying by as much as $6500 per year.  The Medicare Trustees responsible for overseeing the administration of the program have said the following: “The financial outlook for the Medicare program is substantially improved as a result of the changes in the Affordable Care Act.”