The Failure Of Medicare-(A Harsha Sankar Article)
Dear Citizen, December 1995
There is currently much debate in Washington, D.C and throughout the nation pertaining to Medicare. It has become a political football for our politicians. This tug-of-war match taking place in Washington has escaped the logic and comprehension of the majority of Americans. A common sensible approach should be taken in regards to dealing with Medicare.
Medicare, quite frankly, is a failure. It sets a classic example that government cannot play a proper role in making investments. Medicare serves 37 million beneficiaries, spends over 175 billion dollars annually and now accounts for more than 11 percent of the entire federal budget. One hundred billion dollars is robbed from this system. That is 11.5 million dollars an hour that is stolen from mandatory taxpayer funded Medicare due to waste and fraud. The present director of the FBI reports that even organized crime rings and drug kingpins are now in the act of implementing fraudulent schemes to siphon Medicare’s hard-earned funds. The risks for the mob are considerably lower in getting caught than in their other nefarious enterprises.
Other perpetrators include a significant minority of unscrupulous health care practitioners, administrators, health-care companies, and equipment suppliers who take full advantage of the present system through fee-gouging, unethical medical and billing practices. When everyone pays for it, no one cares. This concept holds true for issuance of payment by private insurance companies as well.
Even though 3 percent of all payroll is this nation funds Medicare, is it any wonder that this system faces bankruptcy by 2002? The simplest means to solve this Medicare and also the healthcare crises would be the adoption of tax-free Medical Savings Accounts. MSA’s would offer people the choice of securing their own tax-free accounts for medical expenses. Contributions to Medicare by employees and their employers could be deposited in that account. Money not spent on medical expenses could be rolled over and person’s MSA would therefore grow.
Inexpensive high-deductible insurance would protect a person form high medical costs in the near and distant future. If a person’s MSA was not built up to his or her deductible at the time of the person’s serious illness, the insurance company or person could make the adjustments to meet the difference from future premiums and contributions.
The main purpose behind MSA’s is to establish accountability. People would spend their own money and not the government’s and insurance’s. There would be a much greater incentive to control costs by controlling spending. Additionally, MSA’s would likewise increase awareness of the fraud, waste, and abuse by making patients much more sensitive as to how their hard-earned money is spent. This would bring about much-needed reforms in medical malpractice, licensing, regulatory structure, and campaign finance. Medical PAC’s, which oppose reform, have poured over $83 million into campaigns of congressional candidates since 1983. The PAC’s are the major source of this miserable muddle.
The creation of Medical saving Accounts would save each and every individual in excess of $1,300 a year. Everybody should seize this opportunity and contact their elected representatives on the federal and state level and urge them to support his measure.
Very Truly Yours,
Harsha Sankar
908 Valley Ridge Road
Covington,Virginia 24426
There is currently much debate in Washington, D.C and throughout the nation pertaining to Medicare. It has become a political football for our politicians. This tug-of-war match taking place in Washington has escaped the logic and comprehension of the majority of Americans. A common sensible approach should be taken in regards to dealing with Medicare.
Medicare, quite frankly, is a failure. It sets a classic example that government cannot play a proper role in making investments. Medicare serves 37 million beneficiaries, spends over 175 billion dollars annually and now accounts for more than 11 percent of the entire federal budget. One hundred billion dollars is robbed from this system. That is 11.5 million dollars an hour that is stolen from mandatory taxpayer funded Medicare due to waste and fraud. The present director of the FBI reports that even organized crime rings and drug kingpins are now in the act of implementing fraudulent schemes to siphon Medicare’s hard-earned funds. The risks for the mob are considerably lower in getting caught than in their other nefarious enterprises.
Other perpetrators include a significant minority of unscrupulous health care practitioners, administrators, health-care companies, and equipment suppliers who take full advantage of the present system through fee-gouging, unethical medical and billing practices. When everyone pays for it, no one cares. This concept holds true for issuance of payment by private insurance companies as well.
Even though 3 percent of all payroll is this nation funds Medicare, is it any wonder that this system faces bankruptcy by 2002? The simplest means to solve this Medicare and also the healthcare crises would be the adoption of tax-free Medical Savings Accounts. MSA’s would offer people the choice of securing their own tax-free accounts for medical expenses. Contributions to Medicare by employees and their employers could be deposited in that account. Money not spent on medical expenses could be rolled over and person’s MSA would therefore grow.
Inexpensive high-deductible insurance would protect a person form high medical costs in the near and distant future. If a person’s MSA was not built up to his or her deductible at the time of the person’s serious illness, the insurance company or person could make the adjustments to meet the difference from future premiums and contributions.
The main purpose behind MSA’s is to establish accountability. People would spend their own money and not the government’s and insurance’s. There would be a much greater incentive to control costs by controlling spending. Additionally, MSA’s would likewise increase awareness of the fraud, waste, and abuse by making patients much more sensitive as to how their hard-earned money is spent. This would bring about much-needed reforms in medical malpractice, licensing, regulatory structure, and campaign finance. Medical PAC’s, which oppose reform, have poured over $83 million into campaigns of congressional candidates since 1983. The PAC’s are the major source of this miserable muddle.
The creation of Medical saving Accounts would save each and every individual in excess of $1,300 a year. Everybody should seize this opportunity and contact their elected representatives on the federal and state level and urge them to support his measure.
Very Truly Yours,
Harsha Sankar
908 Valley Ridge Road
Covington,Virginia 24426
posted by Harsha Sankar at 8:11 AM
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