The cost difference isn’t because Medicare is frivolously spending money. It’s because in the higher cost areas people are sicker and the cost of health care is higher. Poverty and chronic disease are the main reasons for the disparity.
Ryan’s budget proposes that in 2022, Medicare beneficiaries will receive an $8,000 voucher, which is the current average spent by Medicare, to go out and buy coverage through private insurance companies. In Minneapolis, $8,000 may buy a fantastic plan covering every aspect of health care but in McAllen $8,000 would purchase a plan probably worse than those the Affordable Care Act is designed to get rid of.
We are not dealing with a health care system anymore but a sick care system. It is predicted that within 20 years we will have more than one hundred million diabetics in this country. We are overweight, under active and addicted to processed foods. If Mr. Ryan thinks he can deal with the current 67 million people on Medicare, Medicaid and the ACA by throwing them under the bus, he’ll need a much bigger bus in the next decade.
Fred L. Goldenberg is a Certified Senior Advisor (CSA) and the owner of Senior Benefit Solutions, LLC, a pre and post retirement income specialist and certified health insurance advisor in Traverse City. If you have any questions or comments about this article or any other senior issue he can be reached at 231-922-1010 or firstname.lastname@example.org.