Robert Reich: Medicare Isn’t the Problem. It’s the Solution

By | July 28, 2015

Some background: Medicare faces financial problems in future years because of two underlying trends that will affect all health care in coming years, regardless of what happens to Medicare:

The first is that health care costs are rising overall—not as fast as they were rising before the Affordable Care Act went into effect, but still rising too quickly.

The second is that the giant post­war baby boom is heading toward retirement and older age. Which means more elderly people will need more health care, adding to the rising costs.

So how should we deal with these two costly trends? By making Medicare available to all Americans, not just the elderly.

Remember, Medicare is more efficient than private health insurers ­­whose administrative costs and advertising and marketing expenses are eating up billions of dollars each year.

If more Americans were allowed to join Medicare, it could become more efficient by using its growing bargaining power to get lower drug prices, lower hospital bills, and healthier people.

Allowing all Americans to join Medicare is the best way to control future health care costs while also meeting the needs of the baby boomer and other Americans.

Everyone should be able to sign up for Medicare on the health care exchanges set up under the Affordable Care Act. This would begin to move America away from its reliance on expensive private health insurance, and toward Medicare for all—a single­ payer system.

Medicare isn’t a problem. It’s part of the solution.

via Robert Reich: Medicare Isn’t the Problem. It’s the Solution.