Michael O. Leavitt - The Medicare reform illusion

Michael O. Leavitt - The Medicare reform illusion: "Despite the report from Medicare's trustees this month that the hospital insurance trust fund will not be depleted until 2029, 12 years later than was predicted just last year, Medicare is no better off than it was a year ago.

The administration credits Medicare's seemingly healthier financial outlook to changes made by the new health-care law. In fact, the legislation has weakened the program. Worse, its changes create the perception of progress, making it more difficult to pursue the reforms that would put Medicare on sound financial footing so future generations of seniors will benefit.

The problem begins with double counting. The Congressional Budget Office estimates that the health law will reduce Medicare spending by about $450 billion over 10 years. But all of those savings, plus massive tax increases, are used in the new law to pay for an expansion of Medicaid and a new entitlement program to subsidize insurance premiums for low-income households."

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