Think "Medicare," and "old people" come to mind.
But as Congress considers adding a prescription drug entitlement
to the 38-year-old program, lawmakers also should keep "young
people" in mind, too.
They are, after all, the ones who will be paying for it-big
time.
Adding a drug entitlement to Medicare without substantial reform
would be a "huge tax on the next generation of young working
Americans," according to Heritage Foundation health-care expert
Robert Moffit in a
July 30 CNN interview. "It's going to be crushing."
Moffit told CNN viewers that, even if the government picks up the
tab for only a quarter of all prescription-drug costs, by the year
2026, 24 cents out of every dollar the federal government receives
through taxes will be spent just on Medicare.
But Moffit has said that even without the prescription-drug
package, Medicare's condition is critical. By 2026, 20 percent of
federal taxes will be used just to maintain current Medicare
demands. Meanwhile, general revenue transfers to Medicare will
double. And the number of Medicare patients will likely double by
2033 as 77 million baby boomers retire.
The only way Medicare can absorb this shock is by imposing market
discipline on the program, Moffit says. That way, old and young
people alike can benefit from it.
See
Moffit's CNN interview and Heritage's Medicare research at heritage.org.
For more information or to receive an e-mail version of "Medicare
Maladies," contact [email protected]
or call Heritage Media Services at (202) 675-1761.
Report Health Care Reform
Medicare Malady #14: No, The Kids Will Not Be All Right
August 1, 2003 1 min read
Download Report
The Heritage Foundation
Authors
The Heritage Foundation
Exclusive Offers
5 Shocking Cases of Election Fraud
Read real stories of fraudulent ballots, harvesting schemes, and more in this new eBook.
The Heritage Guide to the Constitution
Receive a clause-by-clause analysis of the Constitution with input from more than 100 scholars and legal experts.
The Real Costs of America’s Border Crisis
Learn the facts and help others understand just how bad illegal immigration is for America.
More on This Issue
SPECIAL REPORT About an hour read
COMMENTARY 6 min read
SPECIAL REPORT 17 min read