Medicare – Social Security Funding

Americans defend Capitalism with great fervor!  So will I but, our government will not participate.

There are times when the government must show their confidence in our economic standard.  

What I propose is a winner for everyone.  Not only for the Medicare, and Social Security programs but, for the workers in this country who must bear the burden of paying for these programs, and those who depend on these programs.

This would also eventually eliminate business’ liability to the programs.

By design, Social Security has some components of a Ponzi scheme.  It was ill conceived because each working generation contributes for the working class in front of them.

What they didn’t consider was the size of each of those working generations.  For it to work properly each generation of workers had to be minimally the same number of workers as the generation it is funding if not more.

This is simply not the case.  It was just over looked or, ignored.  

Once realized. Congress should have been all over the problem but, they weren’t.  Today we have less paying for more.  There are also obvious costs to administer these programs.

Two things have to occur to maintain Social Security.  Proper funding, and once attained, Congress may not have hands on with ‘borrowing’ from the fund.

At this point, the deduction from worker paychecks directly pays for the recipients of the program.  There should be no deficit but of course, like any well thought out government program, there is a deficit. 

There are less attempting to pay for the heavily populated ‘Boomer’ generation.

Social Security has to become a capitalistic enterprise.  The program must be phased in over approximately 5 years but, eventually it will become a profitable enterprise able to return all profits to users of the program. 

Do you think for one moment, insurance companies became wealthy enterprises by merely collecting monthly premiums coupled with payouts to policy holders?  No.  They are heavily vested in capitalism.

I seriously doubt that a mere premium/payout business model all on its’ own could survive.

While there are questions of government participating in capitalism for profit, my answer would also be a  question:  Why not?  It is after all the American economic standard.  

Any ‘profit’ would have to be accounted for, reducing, and eventually eliminating payroll deductions. Any further excess returned to the end user of these programs.  Why not initiate a way to reduce the tax burden, and increase coverage?

I suggest that a portion of the income to Social Security derived through payrolls everywhere should be invested in Class A, and better Bonds as well as Bond Funds. This should be phased in at the rate of 20%/yr. until 100%/yr. is invested.

The investment program should expand beyond bonds to other dividend instruments, including REITs with direct ownership of property.  

Another investment vehicle would be a mix of long, and short term Certificates of Deposit.

Dividends, and interest payable to Social Security, and/or Medicare.

Hopefully, eventually as investments are expanded,  Social Security will be self sustaining. The program is not working sufficiently as it is now with deficits, and minimal returns.

There is no reason Medicare could not initiate a similar working model.  Medicare is also in the red, and just as Social Security, offers minimal coverage. So minimal that private insurance must be solicited at catastrophic rates to Seniors to cover whatever Medicare will not cover.

Many of the prescriptions covered under private insurance are not covered, and private insurance for Medicare follows the Medicare list of prescriptions.

So, next time you see a Senior with a major cough, understand Medicare does not recognize, chronic conditions causing a cough.  Seniors with Chronic Bronchitis are on their own, and must pay for their own prescribed cough medicines at full price.

While prescriptions may cost less through mail order, I would suggest that the government programs discourage favoritism by, not eliminating the local pharmacy from the picture.

Eliminating the local pharmacy puts immediate pharmaceutical needs at bay when some local paper work is necessary.

Most of the savings given by mail order providers is given to plan providers with the end user receiving only a small portion of the savings.

As aging sets in, it becomes more important for a relationship between the patient, and a local pharmacist.

It’s time for the government to lead, and demonstrate how well capitalism works.  For everyone, including local pharmacies.  

No more competition based on networking.  

You buy an insurance supplement for Medicare, and every medical professional is included.  It is not necessary to change doctors for the sake of insurance networking. 

Without any facts at my side, I’m assuming insurance companies include networking as a money making proposition.

Everyone pays the same insurance premium for specific coverage regardless of the medical professional chosen.

Medical professionals would have to offer specific services at one prescribed price to insurance companies without facilitating network involvement.

While pricing is not standardized, three local prices are procured with an average of the three being the price insurance would pay as their portion (I.E. 80%.)  

The medical professional may elect to accept the insurance pricing or, instruct the patient of their responsibility for the remainder of the fee that particular professional does charge.