Social Security and Medicare are now being paid for by 2.8 workers and by the Treasury, which has no money of its own so it uses China’s money. Medicare will go broke in 2016 or sooner.
President Obama, instead of reforming the programs, has cut half a trillion from Medicare to establish a new entitlement program – Obamacare or The Patient Protection and Affordable Care Act (PPACA).
One of the Medicare programs wasting money is the Medicare bonus program. It was supposed to incentivize plans to improve quality when in fact it was being used to cover up the damage caused by the cuts to Medicare.
The nonpartisan Government Accountability Office directed Obama to cancel the Medicare bonus program for private health plans. The $8.3 billion Medicare Advantage bonus program shows no signs of improving quality as intended – the funded plans are only rated average.
The GAO found that the bonus programs ease the pain to seniors that will be caused by cuts made for Obamacare.
Obama disagrees and said the bonus program encourages plans to improve despite evidence to the contrary. Apparently, it only encourages plans to improve to “just average.”
Republicans have said that the money being pumped into the bonus program is pure waste but Obama doesn’t want to cut it prior to the election for political reasons. It’s not about what it is best, it’s about re-election. Obama knows the money is being wasted on average programs, under the guise of improving quality, but he is using the program funds to camouflage the damage done to Medicare by the cuts made for Obamacare.
Medicare Advantage services about 25% of Medicare recipients and offers lower costs in exchange for some limitations of choice. It is very popular among seniors. Obama came up with the idea of a bonus “demonstration program” to serve as a pilot after his election. The GAO said in their report that this program dwarfs all other Medicare pilot programs over the last 20 years.
The bonus program has been used to offset about 70% of the Obamacare cuts. Half a trillion was cut from Medicare to pay for Obamacare. Those cuts will destroy Medicare but Obama doesn’t care because that was his intention all along. He wants everyone on Obamacare. Read the GAO report here.
Fox News:…The Medicare Payment Advisory Commission said it amounts to “a mechanism to increase payments” and its design “sends the wrong message about what is important to the program and how improved quality can best be achieved.”
The bonuses are the costliest demonstration program in Medicare history. They’ll be paid from the Medicare trust fund…Read more…