Monday, November 17, 2008

Medicare Bailout

Could Medicare be the next big bailout looming on the horizon in the next decade or so?  I am reading an article in the latest Today's CPA which is the monthly publication of the Texas Society of Certified Public Accountants.  This article proposes that definite possibility.  Medicare and Medicaid comprised only 1% of government spending in 1966.  Today these two programs are 20% of all government spending!  What makes this increase most alarming is the fact that more and more baby boomers are adding to the ranks of Medicare - potentially 10K of them everyday for the upcoming 2o years.  Right now, there are 4 workers to every beneficiary.  In 20 years there will be 2.3 workers to each Medicare beneficiary.  Lawmakers need to address this soon, obviously, but it is one of those things that none of them want to touch with a 10 foot pole because of the risk of losing votes....especially baby boomer votes because of the tough decisions that need to be made.  I just think about all my young millennial friends and family who are entering the workforce or will be soon and are going to have to pay for all this.  The burdens that we are putting on future generations...

No comments: