The Market Ticker
Commentary on The Capital Markets- Category [Health Reform]

From JP Moron "Asset Management":

J.P. Morgan Asset Management says the average 65-year-old last year paid $4,400 in premiums for Part B (outpatient services), Part D (prescription drugs), Medigap supplemental coverage, out-of-pocket expenses, vision and dental services. Those costs will rise at an annual rate of 6.1 percent over the next 20 years, to $17,000 at age 85, the company forecasts.

No it won't, for the simple reason that as an average most seniors simply don't have $17,000 a year to spend on this; that would be either nearly all or factually all of their income.

In fact:

HealthView does an annual calculation of the portion of annual Social Security income that will be consumed by health care expenses for an average couple (retiring at 66 with a $25,000 benefit). The expense tally includes Medicare Part B and D premiums, dental insurance premiums, and out-of-pocket costs, including copays, hearing and vision expenses. The firm estimates that health care expense will consume 67 percent of Social Security income for someone retiring this year, and that the figure will rise to 83 percent by the time that person is 85 years old.

In other words Social Security, effectively, funds the medical monopoly scam and little else.

To those in that much-vaunted "senior voting block" I say this: You either put a stop to this scam, not by increasing benefits and screaming about "cuts" as the AARP and Democrats constantly try to chide you, but rather by locking up the hospital administrators, physicians and drug companies who are committing acts daily that in any other line of business would land them on the wrong end of felony charges and decades in prison for violating various consumer protection laws along with the Sherman, Clayton and Robinson-Patman acts or you are screwed -- period.

That is the only solution - collapse the cost of medical care by forcing the collapse of the monopolistic behavior that is supposed to be against the law in any "industry."

If you don't unless you're quite-well off the odds are that going to be eating cat food -- or worse -- irrespective of how much screaming about Social Security you do.

There is exactly one way out of this trap -- no more, no less.  It is to collapse the cost of this outrageous rip-off by approximately 80%, which incidentally is exactly where the cost in other advanced nations such as Japan, where this behavior is not tolerated, suggests it will go.

You either act on this issue while you still can or you will be impoverished by it.

View this entry with comments (registration required to post)
 

Main Navigation
MUST-READ Selection:
No Kidding? Stan Sees The Problem?

Full-Text Search & Archives
Archive Access
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.