Interesting Read On Medicare

I just read an email stating that Medicare will cease to exist after 2027? I’m having a hard time believing that. A move like that would be political suicide for Congress and the White House. I am appealing to those who read this blog to contact their Congress people and tell them to fix Medicare if they want to stay in office.

We all understand the costs are skyrocketing but no one is doing anything to control that. Everyone is billing Medicare at rates that are too high and of course, Medicare reduces those billed rates to something more reasonable.

No one wants to admit the system is broken and Congress is too divided to attempt fixing it. Congress, of course, is not on Medicare or Social Security and perhaps that is part of the problem.

The solution is difficult and not going to be fixed overnight. Congress is responsible for the health of Medicare and Social Security, but they keep raiding the trust fund of money to fund pet projects and it will never be fixed.

As our population ages, that brings all sorts of issues. As we age, our health usually changes and we need more medical attention. People are living longer, thus the need for Medicare is paramount to the overall health of our citizens. Congress cannot just eliminate Medicare and expect the citizens to just accept it and move to individual coverage which will be so much more money than Medicare.

I am not 100% sure what the next steps would be assuming Medicare is no longer. Whether you realize it or not, you have paid into Medicare Part A as 1.45% of your social security tax goes to Medicare. You are also paying for Part B separately from Part A. Everyone thinks Part A is free but look at your paycheck and you will see Medicare broken out from social security. Having said that, the payments we make are really taxes to cover the cost of Medicare. It is apparent that the costs aren’t working. The solution is not to eliminate Medicare but to find a way to fix it.

I would like to see a panel of doctors, hospital administrators, Big Pharma, and insurance brokers who specialize in Medicare and other interested parties. They would be tasked with finding a way to fix this, so it is fiscally sound for years to come. Not an easy task, but doable. I believe you start

with Congress, they are not on Medicare or Social Security and they should be. If they were, they’d find a way to fix it, because it impacts them as well.

Next is Big Pharma. They have been overcharging for Americans for years while selling those same drugs everywhere else in the world for less money. That needs to be addressed with laws preventing Big Pharma from doing that. The law should state that if Big Pharma sells their medications elsewhere in the world for less than the average price, they charge Americans, then they lose their tax-free exemption for two years for every one they are overcharging Americans. Many years ago, I met an insurance broker who developed a program that showed the best prices for drugs anywhere in the world. The government confiscated the program. I saw how much drugs cost worldwide and am convinced Americans pay the highest prices in the world.

That will stop the abuse, and it would be one step of many.

Next, that same group of people should be looking at the hospital charges, which are very high and reduced by Medicare anyway. There are many areas of the hospital bill that should be reviewed and adjusted downward. The overcharges are astronomical.

Then they need to review the cost of medical supplies, which are costly and need to be reduced as well.

I’m not going to discuss medical personnel’s income because I believe they are entitled to make as much as they can. I applaud them for the time it took them to get their designation, and do not begrudge them the income.

Congress is discussing these changes currently, but they need to hear from everyone who is on Medicare. The more people who contact their representatives, the better chance we have of impacting the decision about Medicare.

Meanwhile, prognosticators will continue to discuss the demise of Medicare but perhaps they should look for ways to save it. Almost all seniors will not be able to afford the alternative. This is serious and needs addressing now.

I hope this information is useful, and if anyone has questions, please contact me via phone or email and I will respond quickly.

Also, you may want to take a look at 2026 Medicare Information.

Len Barend, Broker

Cell: 702-250-2200

Email: len@insurance4unevada.com