Obama is set on clarifying a misconception regarding this country’s Medicare program. Most Americans don’t realize that Medicare recipients receive only what they have paid for through taxes, premiums and medical co-payments. Basically, for every dollar you pay to Medicare, you draw about $3 in benefits. This misconception is what’s giving politicians a headache in terms of trimming those benefits or raising out-of-pocket expenses – a similar misperception usually attributed to Social Security.
Currently Obama has suggested cuts to payments for health care providers and raising costs for higher-income beneficiaries in order to weigh down the growing imbalance between Medicare’s benefits and taxes.
Senator Ron Johnson is skeptic, “I’ll know President Obama is serious about working with us when I start hearing him tell the American people what he told us in private.”
But, hey, Americans getting back what they pay for is nothing new. Heck, having been establishing 80 years ago during President Roosevelt’s marketing of Social Security. It’s always been a “pay-as-you-go system” with workers’ taxes directly feeding benefits for current retirees.
To read more in detail visit the New York Times.
Where do you stand on Medicare and/or Social Security cuts? What do you define as “entitlement”? Comment below.
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