NCPA - National Center for Policy Analysis

MARCHING TOWARD A FINANCIAL DISASTER

April 23, 2009

There are 78 million baby boomers now starting to sign up for early retirement under Social Security and in two years they will start signing up for Medicare.  The problem is that the federal government has put no money aside to pay these obligations, says John C. Goodman, President and CEO of the National Center for Policy Analysis.

To begin fixing the system, Goodman recommends:

  • Liberating patients by designating that one-third of their Medicare dollars be under their control; the patient would be able to pay for any medical expenses with that money and would control how that money is spent.
  • Liberating doctors by permitting them to re-price and re-package their services just as every other profession does.

To make this all work, we have to start pre-funding the system, says Goodman.  Everyone should start putting money into a health care retirement account -- perhaps 2 percent from employees and 2 percent from employers.  These funds would be invested and be used to fund retirement health care, thus taking the burden off of taxpayers.

Source: Herb Denenberg, "U.S. Marches Toward A Financial Disaster Worse Than Anyone Thinks," The Bulletin, April 23, 2009; based upon: John C. Goodman, "A Prescription for American Health Care," Imprimis, March 2009.

 

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