Saturday, March 15, 2014

Will Obama hurt Medicare? No. It may even strengthen it

Just posted a series of links to fact checkers and analyses of the issue.  Key is the one from the Congressional Budget Office which concludes Obamacare will extend the life of Medicare for an decade.
See: CBO March 20, 2010; Joint Committee on Taxation Revenue Estimates, JCX-17-10 (March 20, 2010).
CMA ||  Medicare Facts & Fiction   Benefits are not cut; CBO says the ACA extends the life of Medicare
Simpson-Bowles Return to the Medicare | Medicare News Group   Worth reading: By using the ACA as a foundation, Simpson-Bowles gives a nod to the fundamental approach of President Obama's strategy: reform the program internally, pass along more costs, and restructure payments and treatment modes. 

https://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/110xx/doc11005/01-22-hi_fund.pdf

Essential reading for those who believe Obamacare will weaken Medicare.  From a letter to Sen. Jeff Sessions:

Budgetary Impact of the Legislation

On the basis of the economic forecast and technical assumptions in CBO’s March

2009 baseline, CBO projected that, under current law, the HI trust fund would be

exhausted—that is, the balance of the trust fund would decline to zero—during

fiscal year 2017. Enacting PPACA, including the manager’s amendment, would

reduce net outlays for Part A of Medicare by $245 billion over the 2010–2019

period relative to that baseline, CBO estimates. Enacting that legislation would

also increase HI payroll tax receipts by about $113 billion over that period,

according to estimates by CBO and the staff of the Joint Committee on Taxation

(JCT). Together, those changes in outlays and revenues would diminish budget

deficits and add to trust fund balances by $358 billion over that 10-year period.

Given those changes in the financial flows of the trust fund, CBO estimates that

the HI trust fund would have a positive balance of about $170 billion at the end of

fiscal year 2019.

Will Obamacare hurt Medicare Advantage? | PolitiFact An analysis of interest

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