The Truth Behind Medicare Spending

As usual, there is much spin regarding the topic of Medicare spending. The only common denominator behind all comments is that everyone admits there will be an end to Medicare as we know it.

So what’s the spin? Well, some people are trying to dissuade the public by stating that per capita Medicare spending is down and equating it to the U.S. getting a hold of total Medicare spending. This, my friends, is a complete falsehood.

The reality is that the baby boomer generation is entering the Medicare program and in the long term that is a huge problem for the Medicare budget. Simply put, there will be a surge in the number of people that Medicare will have to support. However, in the short term Medicare’s per capita spending numbers are skewed. Why? It’s actually quite simple. With a large number of “younger” baby boomers entering Medicare, the group is skewed toward a younger, healthier population. As previously stated, however, when this surge of people in Medicare ages (and needs more medical care), Medicare spending (in total and per capita) will soar and program will crumble.

So don’t get caught up in whatever the current hype is. Rather, continue to believe in what everyone has said for years . . . . Medicare as we know it will eventually come to an end.

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