"Health Care: Progressive Change in a Digressive Direction"

It seems as though our leaders are lost at sea when it comes to addressing health care in America. In the 2nd debate with John McCain, Barack Obama declared he believed it is a right of every American to have health care. Barack Obama believes every American has the right to the same health care plan that members of Congress receive.

Let me first provide a few facts about our healthcare funding. Currently, Medicare is an enormous tax burden but future burden will break America’s back. This statement comes directly from the Trustees of Social Security and Medicare trust funds.

“If the Trustee's projections prove a reliable guide to the next few decades, absent an increase in earmarked sources of revenue for the program, in just 15 years payment of currently scheduled Medicare benefits would require General Fund transfers equal to 25 percent of Federal income tax revenues (projected at their historic level of GDP)—more than triple their 2005 fiscal burden—and less than 10 years later the General Fund transfer would equal nearly 40 percent of Federal income tax revenues.”[i]

The numbers are shocking! Consider even further the following facts:

1) In 1962, TOTAL programmatic spending on programs such as welfare, social security, and medical programs amounted to 32% of overall tax revenues.

2) Today, the same spending amounts to over 60% of tax revenues.

3) Today, Medicare accounts for roughly 16% of overall tax revenue outlays.

4) As mentioned above:
a) In 15 years – 25%
b) In less than 25 years – 40%

So, hypothetically, in 25 years 84% of all tax revenues will be going to social programmatic spending! That is, 60% today plus 24% (the difference between Medicare today and 25 years from now).

Note that these figures are on top of Social Security funds having a negative balance beginning in 2018 and being completely exhausted by 2038! Barack Obama has already ostracized conservatives for cutting back on Social Security expenditures. The only other way is to increase taxes!

If I were the President of the United States, I think now is a great time to announce free, government-sponsored, taxpayer provided health care for everyone! However, back here in reality, the government does provide everyone health care. Granted you may have to go to the emergency room, but you will not be turned away. Apparently, that is still insufficient.

It is time to come up with solutions, so what are they?

Notes:

[1] Social Security Administration. “Message to the Public.” 2006. <www.ssa.gov/history/pdf/tr06summary.pdf>