Is Medicare Ill?

Medicare, the extremely popular health insurance plan for aged and disabled Americans seems to be withering. The reason is the struggle between Republicans and Democrats. Republicans are all for privatized Medicare and Democrats want it as a universal public program.

This struggle began in the Gingrich Congress in 1995. Today it still exists. Financially Medicare is in a much worse position than Social Security. According to the trustees, Medicare should be the focus of the 2008 campaigns rather than Social security.

The HI trust fund of Medicare is expected to have more outgoings than incomes this year. The SMI trust fund will continue to require general revenue financing. If you look around you will see many signs of trouble for Medicare and Medicare beneficiaries. Part B premiums are higher than before and likely to hit $100 a month soon. In addition Medigap insurance costs are also rising.

Part D drug insurance are up as well. Medicare has become privatised for most part. A big chunk of Medicare beneficaries have now taken to Medicare Advantage. Money as well as members are leaving Medicare. Medicare is bogged down with problems. The final say will be the 2008 presidential campaign which will decide whether the original Medicare returns or it becomes market based.