The Greatest Threat to America's Role in the World Today Is...
Medicare. That's right. In his Times column today (available online, unfortunately, only to the "TimesSelect" elite), Tom Friedman warns that Medicare will bankrupt America, forcing the nation to retreat into isolationism. The only solution? "Trim the Medicare and Social Security benefits promised to [baby] boomers." "Either Social Security and Medicare shrink or the Pentagon shrinks," Friedman concludes, "because higher taxes seem to be out of the question for now.
But Friedman has it exactly backward. Social Security and Medicare are more vital in today's globalized world than ever; the key isn't to cut them, it's to achieve their promise. And while that does indeed mean a larger public sector (and, yes, higher taxes), it doesn't mean Americans will be paying more for health care and retirement protection than they would if nothing were done. Indeed, quite the opposite.
Friedman has elsewhere written about how much more cutthroat the world economy has become. And there's plenty of evidence that Americans are facing greater economic risks than they did a generation ago. In this insecure environment, it's more crucial to have portable insurance, not less. And it's crucial not just because insecurity is bad in itself, but because workers who are insecure are less likely to invest in the skills and protections they need to navigate the turbulent waters of a dynamic global economy. They're also much more likely to support the very isolationism and protectionism Friedman wants to forestall.
The fact is that most of the looming costs that Friedman laments will be paid one way or another -- by employers, by government, or by individuals and their families. Shifting them onto employers will only burden corporations and gum up the job market. Shifting them onto workers will only make the risks faced by Americans -- and the fallout that these risks create, in personal hardship and forgone investment -- more severe.
The question, then, is: How can these costs be best managed and controlled, and how can the risks that they create be best spread? Just asking the question makes the answer transparent: through some kind of inclusive social insurance framework that has built-in cost controls -- that is, through a framework like, well, Medicare.
Expanding Medicare to achieve universal insurance would actually improve its long-term fiscal outlook, by balancing the federal government's commitments to a growing elderly population and its commitments to working-age Americans and children, who desperately need health security, too. (Right now, unlike in any other nation, someone's medical costs suddenly show up on the federal balance sheet when he or she turns 65, exacerbating the effect of America's demographic shift.)
But the big point is that Medicare isn't the threat Friedman should be worried about; insecurity is. And insecurity can't be addressed by trimming existing public benefits. It will require larger ambitions -- and a less blinkered perspective.


That's a great point. I would actually highlight the first point - insecurity is bad in itself - this gets to what society is all about. It may never be possible to get rid of poverty, etc, but surely there is a responsibility to do as much as possible to create a decent standard of life for all citizens. There was a time when people actually got excited by this sort of project.
Its also very true that part of the "deal" of globalization is providing people with social supports that respond to changing economic realities, such as the fact that jobs are becoming much less secure.
Quite apart from such substantive points, I found Friedman's column to be rather offensive. I don't buy into his portrayal of the manner in which American military power functions. Nor do I buy into his notion of "entitlement gluttony". In any case, he has always struck me as being more concerned with making himself look brilliant by putting some distinctive spin on sexy issues than with offering trenchant analysis.
January 5, 2006 1:45 PM | Reply | Permalink
Those who say we can't afford national health care need to be pressed to spell out what they mean: Do they want to save money by forcing some people to go without medical care? Who?
If they don't mean that people should go without care, then I don't see what "affordability" has to do with anything. Somebody is going to pay for that care, whether it's the government or not. Why can our society afford a private-sector solution if it can't afford a public-sector one?
Undoubtedly someone will try to make the private-sector-efficiency argument. But when it comes to health care the evidence points the other way. The American healthcare system has more private-sector involvement than any other first-world country, and it's the most expensive.
January 5, 2006 1:56 PM | Reply | Permalink
"Those who say we can't afford national health care need to be pressed to spell out what they mean: Do they want to save money by forcing some people to go without medical care? Who?"
Perhaps reading this will give an idea of what they mean.
January 5, 2006 2:19 PM | Reply | Permalink
Sorry, Tom, I'm not buying it. While the pressures of globalization are real, they are not the whole story. Maybe skyrocketing CEO salaries are part of the problem. Maybe a government not willing to fund its obligations are another. I'd trade a percentage point in economic growth for an enlarged welfare state that took care of the economically vulnerable. It's not like our economic growth is benefitting anyone but the upper 1-5% of Americans anyway. And this while we are divesting ourselves of our ability to innovate and compete, dismantling the manufacturing portion of our economy, and destroying our educational system.
While I could rant for hours aginst his vision, the underlying point is that we are not helpless against the tide of globalization. We could enact higher taxes, aggressively prosecute anti-dumping legislation, and institute targeted tariffs where appropriate. It's interesting that Tom would come out in favor of kicking the last legs of economic security out from under the middle class and working Americans, yet through his hands up in the face of anti-tax dogmatism. His prescriptions have real-world consequences for the type of people I'm familiar with and care most about, and are thoughtless emotionally as well as intellectually.
Just because the hyper-capitalists and robber barons Tom is so enamored don't want to do something, doesn't mean we have no options left.
January 5, 2006 2:21 PM | Reply | Permalink
You're welcome. Let the outrage begin...
January 5, 2006 2:26 PM | Reply | Permalink
Yeah, here's my thinking: Through some horrible accident, or maybe some Manchurian global conspiracy, Bob Samuelson's brain was downloaded into Tom Friedman's Iraq-war-damaged shell of a psyche. Tom--come back. It's not too late to repudiate the dark side! Besides, we're not done with the old Tom!
January 5, 2006 2:29 PM | Reply | Permalink
Someone should say to Friedman: relax, America can afford to let grandma get her hip fixed. Indeed, I am pretty sure you could fix every ailing cataract not just in the United States, but on the planet, for less than the cost of the Iraq war. I also would guess that doing so would do more to make America safer in the long run. People like their grandparents a lot and would not easily forget that sort of thing.
This is way too idealistic for 'foreign policy analysis', of course. Not to mention columnists and 'holders of power'.
January 5, 2006 2:37 PM | Reply | Permalink
Why would anyone take anything Friedman says seriously? Surely by now we know the man doesn't know much about much of anything.
And, who is the brilliant brain behind the canard that taxes cannot be raised? Of course they can be raised.
January 5, 2006 3:14 PM | Reply | Permalink
In the days before Blue Cross of NY went private they used to advertise that 96% of premiums went to pay benefits. Now that they are a for-profit company they claim 70% goes for benefits.
That means they have managed to shift about 26% of the payments into the system into overhead and profit.
Medicare/Medicaid has about a 2-3% expense ratio. It is commonly taken that the overhead from private insurance amounts to about 30%. If that amount were restored by using a government administered health plan (as is done in all the other industrialized countries) there would be enough money to cover all those presently uninsured or under served.
But then how would Bill Frist have financed his senate campaign? And Richard Scrushy would not be required to give back the $48 million he bilked the government for.
When was the last time you heard of a Medicare employee stealing $48 million?
With this type of money floating around is it any wonder that the neo-cons want to keep the gravy train going. Changing the system will be difficult with so many hands in the till.
January 5, 2006 3:42 PM | Reply | Permalink
The Greatest Threat to America's Role in the World is.... that Friedman is back from vacation. Can't we just exile him to India so he can interview cabdrivers and high tech tycoons all day while writing "The World is Triangular" and "Attitudes and Platitudes"?
On TPMcafe we learn today that Iraq will cost 1 to 2 trillion bucks, ie, roughly the entire US budget. Given the disaster we've created, it's hard to think of any time in our history when the commander-in-chief has screwed up so badly at such high cost!
The solution: why, obviously cut down Medicare and Social Security!
Please, New York Times, increase the TimesSelect fee to 1 million dollars, so no one is even tempted to read the Friedman brain soup that passes as "analysis."
January 5, 2006 3:44 PM | Reply | Permalink
Not to mention that pundits like Friedman and Samuelson would remain personally unaffected by the dismantling of Social Security and/or Medicare.
What on earth makes Friedman think that Americans will support the destruction of Social Security/Medicare in order to fund an ever-expanding American Empire that will won't benefit them in the slightest?
January 5, 2006 4:00 PM | Reply | Permalink
Most of Tom Friedman's viewpoints are rather too simplistic. I heard him at a national meeting in November 2005, his 30 minute verbalization of the contents of his World is Flat book. Unfortunately, there are many people who swallow his stuff like gospel. (I know two - a colleague's mother, and a close personal friend of mine who is trying to get him to keynote an event at UC Irvine). He connects the dots, so to speak. Being a columnist at NY Times opens many doors for him, so he is able to travel around and get firsthand information, and then connect the dots. So it is important to debunk some of the simplistic notions he peddles.
First off, I don't buy his notion completely that the world is happy that America is a benign protector and glad that it spends money on armaments, letting them spend on non-defense arenas. Japan is beginning to consider a more aggresive defense force for its own national security, and rapid deployment of US troops from South Korea, in the face of its pacifism towards its northern brother, as well as strength reduction in Europe (Germany primarily) is on the cards for 2006. Any of the fancy weapon system and Future Combat Services (FCS) that is Congresionally mandated by 2015 will NOT help US defense partnerships. Even a real threat from China towards Taiwan will NOT bring US troops to a face to face confrontation. Then who in the world is happy about USA's benign role as the globo-cop? No one. Yes, there will be countries who will co-operate with US on military matters (India, my country of origin is one such - probably will grant US FOLS rights, against considerable internal sentiment). But no one will base their national defense strategy on US cooperation alone. Each country has much stronger local and regional imperatives that will guide its security related spending.
But he does highlight what is an increasing budgetary problem for healthcare in US. As Paul Krugman has argued, we spend more per capita in healthcare than most, and get little value (except in specific cases). There are several inefficiencies, but two that can be addressed more readily are: lack of universal health coverage, which is driving up the actuarial costs of those who do have coverage (whether company sponsored or self covered), and rapidly increasing cost of delivery mechanisms. This second one can be addressed by telemedicine and other technological innovations. But when it comes to the first, Friedman's simplistic answer about Medicare only muddles the issue.
I have a sneaky feeling that the drug prescription program with its 47 different choices, incorrectly printed reading material, and May 15 2006 looming deadline, will drive many unfortunate seniors out of much needed medical care!
January 5, 2006 4:15 PM | Reply | Permalink
They can be raised, and they will be raised -- whatever is done with Medicare. I wanted to append a separate discussion of this point to my post, but I decided it's deserving of its own post. Thanks for bringing it up. I hope others will have something to add.
January 5, 2006 4:15 PM | Reply | Permalink
So glad I didn't take that discount intro offer on TImes Select. The writers on this blog are far better than that guy from the frozen lands of Minnesota where the water is just so slightly tainted with... ???...
The USA already spends twice as much ($5,000 per person-based on total population and dollars spent) on healthcare (not including $$ spent on pet health care). That is over twice what the rest of the western world spends. Lots of the US healthcare money goes, of course, to overpaid CEO"s. advertising and insurance overhead and paerwork. The rest of the western world uses their piddling $2500 per person to cover everyone in the country. Maybe we should look at how Castro does it-or at least Australia.
January 5, 2006 4:23 PM | Reply | Permalink
But could I ever go for a Health Party. Could I ever go for a party that would totally reject Friedman's arguments and offer a clearly different view of our "role in the world".
What if our "role in the world" was to be the best educated, healthiest, cleanest, sanest, people on earth? What if we valued quality of life not quantity of plastic, guns and horsepower?
What a dreamer I am.
January 5, 2006 4:48 PM | Reply | Permalink
One reason there is not more outrage is that what Jacob said Friedman said is not quite accurate. He was not arguing that healthcare was not important. He was saying that with Baby Boomers starting to retire the pressure, caused by the problems in healtcare, on Medicare is going to start sucking up more and more resources from other American needs. He ended his column with the presumption, seems a politically correct observation, that raising taxes to deal with the shortfall is not viable.
The question that should have been asked if taxes can't be raised and Medicare is going to put enormous strain on our resources then how to convince Americans to pay more in taxes.
January 5, 2006 6:13 PM | Reply | Permalink
Because Friedman is more knowledgable and smarter than virtually anyone who participates at the Cafe? That may be why. Lots of dreaming may sound good but we live in a coutry that elects Republicans after Republicans and the only thing the Left can say is Single Payer System.
January 5, 2006 6:16 PM | Reply | Permalink
Taxes can be raised? Clinton did it without a single Republican votes. Democrats will barely mention the word taxes. When the Republican governor of Alabama tried to raise taxes Republicans campaigned against him.
The Democratic campaign will be weaken the military and raise taxes? I would not believe a Republican will be able to succeed Bush. I fear that will be wrong.
January 5, 2006 6:20 PM | Reply | Permalink
Canada's public system provides full hospital and doctor coverage to all and prescription coverage to seniors. There are some delays for non-emergency surgeries in some locations, but overall, on average certainly, health care is at least as good as in the U.S. Total cost is under 10% of GDP whereas in the U.S. total expenditure per capita on health care is at least 30% higher and a lot of people are getting not much and almost everyone is worried about it. The difference? One, we spend very little money on military by comparison to the U.S. and so the system is affordable (and we throw in low cost, high quality, university education and a rapidly expanding provison of public daycare). Two, as noted, administrative overhead for hospitals, doctors, and insurance payment administration is radically reduced.
January 5, 2006 6:26 PM | Reply | Permalink
Friedman should stop driving around in a Mercedes, like many of our wealthy, while using the elderly's retirement to pay the country's expenses.
I had no idea how much welfare the wealthy received from the working people until the Bushites took office. It is time they pulled themselves up by their bootstraps and paid their share of the taxes.
Here is one theory about the rich, business and taxes. The rich threaten to leave the country and take the jobs overseas. That doesn't scare me. We can start new businesses and boycott those who leave. A lot of people would love to pay taxes on money they would make off of a business. They would love to make money period.
We can speed up patent times, if they take them with them. We have the biggest military, unless Bush has drained it totally, so what could they do about it?
Thinking about it makes me realize we have been held hostage to the oil and health businesses, to name a few, for too long. We need to move on.
My dad told me the depression was caused by too much money in too few hands. The rich wouldn't spend it to create jobs. Roosevelt took care of them.
The powers that be may have worked on the demise of Social Security and Medicare for a long time.
The push to get rid of Medicare and Social Security is some want us to be dependent on the stock market for retirement and they want 30% profit off our medical needs. There is no way the stock market can be depended on to support the elderly and it is a ridiculous idea. Even with going international, it may work for some, for awhile, but it would be a tragedy at the end.
Many retirees say that it is costing them $8000 a year, since they retired, for medical. People are making some money off the stock market, but the average Joe will never make enough from investing off the medical funds to pay that $8.000 a year, let alone the total of $200,000 they are predicting it will cost the elderly after they retire.
There is some funny business going on with Medicare. We have paid into Medicare 1.45% from every paycheck and the employer has matched it. It is put into FICA just like Social Security is. The total 2.90% is charged on every cent of the pay check from highly paid CEOs and famous sports players to the least of us. There is no cap on Medicare like there is with Social Security.
There was a large surplus in part a or b of Medicare, when Bush "fixed it" now it is almost bankrupt.
I read there is talk of them putting the elderly veterans into Medicare, but I don't know if they did it or not.
The thing is, the tax haters know they owe Social Security a lot of money, and they know they will have to start paying us back when we start cashing in our surplus bonds in 2018. They would rather dismiss it as greed of the elderly than work out the problem.
I don't know the exact figures, but if they would stop borrowing it now, then it wouldn't be nearly as hard to pay it back. Maybe we could buy foreign bonds with the remainder of the surplus or put it in the stock market until it is needed, in ultra safe funds. When they talk about how much Social Security will cost, they are projecting into infinity and aren't allowing for "how great the market is going to do."
Those who have paid SS in shouldn't have to pay themselves back. Since $90,000 is the SS cap, maybe we could put a small surcharge on federal income taxes on over $90,000 incomes plus dedicate the estate tax to paying back the SS bonds. The repayment tax could be spread over different areas and it wouldn't hurt any person or group too much. One big problem is they hate to give up their gravy train of Social Security. They know they will have to increase taxes to replace what they are using of Social Security, then later pay more taxes to pay back what has already been borrowed.
They are saying we will live to be 120 years old, but statistics show we live 2 to 3 years longer now than the average person did in the year Social Security was set up. More are living to age 62, but that means more are paying into the system.
January 5, 2006 6:49 PM | Reply | Permalink
January 5, 2006 7:06 PM | Reply | Permalink
American health care costs more and delivers less than that of countried that provide nationalized health care. How could it do otherwise, the way it's set up?
As a nation, we have hundreds of insurers each with its own processes, standards of care, and preferred providers. Employees move in and out of this patchwork of systems as they change jobs with increasing frequency. Providers must know how to bill each or they go unpaid. When they go unpaid, either through bureaucratic snafu or from treating patients who can't pay, they raise prices overall. Patients can't make wise decisions as consumers because the process is unintelligible. Workarounds, such as poor patients using the ER to get free care for sniffly kids, abound. The waste in this process is an untapped fortune.
Make one national health care plan, with one set of rules and one standard of care. Make every American a member and every licensed provider a part. Don't tie anything to employment, so nothing changes when a patient is hired or laid off, and foreign employers don't face the health care roadblock to bringing their jobs here. Just cut the waste and inefficiency in US health care and the whole affordability picture changes.
For any financial shortfall that remains, I'm with John Kerry: roll back the tax cut for the top fraction-of-one-percent. And use all that's left over to start paying down the national debt.
January 5, 2006 7:31 PM | Reply | Permalink
January 5, 2006 7:35 PM | Reply | Permalink
We have this all wrong and Friedman isn't helping. The problem is that America is facing real competition for the first time and it doesn't like the threat. His argument, which he doesn't make clearly, is that we will be have to make choices in the future because the competition will force us to. We have a set of budget priorities that are untenable in a globalized economy so we will have to choose between keeping taxes low or raising them, and between entitlement programs and other stuff like defense. The problem is that we thought we could have it all and that the gravy train would never end. Whoops!
Right now we are trying to have it both ways: we want to keep our programs and we want to be the world's enforcer. In the face of competition we will have to recognize for the first time that we can't do both. So which is it: cut back our world role and let the Chinese take over as the super power? Or slash back our social programs? My money is that America will do a Europe and go for the former. Maybe we'll be suffering from French disease in another 50 years or so.
It didn't have to be that way of course: we could have kept a tight budget and financed our social programs properly. We could have protected the Social Security trust fund. We could have opted to keep defense spending focused on defense and not offense. We could have developed a more efficient health care program [aka a social program].
That would have meant higher taxes all along, and a recognition that American power was limited. It would have meant cooperating with partners rather than bossing the world around. It would have meant admitting that free wheeling all American capitalism doesn't always produce the best social results. It would all have sounded so "Old European". The real American hubris is that the electorate really thought it could have it both ways and it hates to learn that it can't. So we get angry and lash out at people like Friedman who annoy us because when they try to tell us that.
BTW the aspect of his column that no one seems to have commented on, but really must annoy our foreign friends is the astonishing assumption that he makes regarding world governance. He seems to think the world likes having America act as enforcer [he says 'governor' because it sounds more pleasant]. I doubt that they do. It must get a little tiring having all the world's big decisions being made in Washington where no one outside of America has a vote. That looks and quacks a lot like an empire to me!
January 5, 2006 8:41 PM | Reply | Permalink
suvro: Most of Tom Friedman's viewpoints are rather too simplistic.
Gently put.
I would add that when Tom is not being simplistic, his theories are outright insane. As in "we have to invade Iraq to break the terrorist bubble but it is even more important to do it right." Later Tom was shocked, truly shocked, that the leaders of our government did not take seriously his brilliant advise.
As far as American role of a global cop is concerned, I do not see that we resemble a competent honest cop. Chief humanitatian crisis of today, Darfur, is studiously ignored. We attack after giving an ultimatum that was one big lie (it is not too late to give up the weapon of mass destruction). We negotiate to get immunity for war crimes. We torture, say that we do not and we say that we must. We undermine international law.
As cops we are an utter failure.
January 5, 2006 9:53 PM | Reply | Permalink
And all this time I thought the greatest threats were a Lexus and an olive tree! What a maroon!
I see the linking of Social Security and Medicare again. That is a GOP talking point. Let's stop that and call attention to it when we see hacks like Friedman doing it too, OK?
January 6, 2006 5:00 AM | Reply | Permalink
As for taxes, it's incumbent upon those who think they won't be raised to explain how the ongoing shortfall in U.S. fiscal policy (caused in the short term mostly by tax cuts and in the long term by a mix of tax cuts and the rising costs of social programs) will be closed. By a massive retrenchment of Social Security and Medicare? Given the Medicare prescription drug bill (bad as it is, it did increase spending substantially) and the President's Social Security rout, that seems to me hardly less likely than tax increases. (By the way, Bush Sr. also raised income taxes in 1990, and payroll and state taxes rose in the 1980s and 1990s.)
As Herb Stein once said, "If something can't go on, it won't." Taxes will go up -- one way or another. But if we thought about our public and private spending on social goods like health care and retirement protection now, we could spend a lot less in total social resources to close the gap.
January 6, 2006 6:08 AM | Reply | Permalink
Of course, I meant "hardly MORE likely than tax increase."
January 6, 2006 6:33 AM | Reply | Permalink
I am not opposed to raising taxes. It is my assumption that the only way the deficit will be gotten under control is through a combination of tax increases and spending cuts. However, and perhaps the tide is turning, proposing tax increases has been a political non-starter. Both the Left and the Right seem to believe that there is a pain free way to govern our nation and I have yet to see a politician try to persuade the electorate to the contraray.
As I read Friedman he made the error of combining Social Security and Medicare. Social Security may present no problem let alone a crisis. Medicare is a big problem not because it is a government program but because healthcare costs are out of control. Friedman was arguing that unless Medicare costs are contained, and it does not follow that it means cutting the program, then it will consume more and more of our resources and the global role we probably have to play, and I would say should play, will be impossible.
I do not see how Friedman wrote anything that wasn't correct. For the country's welbeing and for that matter to prevent oldline companies from declaring bankruptcy wholesale, medical costs have to be limited.
A system that focuses on providing everyone quality care, as Paul Krugman points, out can be done for less than we do now. The United States can also afford to pay for great healthcare. It will be a beneficial for everyone. However, to make it politically feasible it will have to figure out what to do with private health insurers, the runners of the Harry and Louise ads, and more importantly health insurance agents.
Friedman was arguing there are tradeoffs necessary. Too many on both sides of the political spectrum like to pretend there aren't and denounce those who know there are.
January 6, 2006 7:48 AM | Reply | Permalink
Let’s raise taxes. That way the people who have worked their entire lives and paid their taxes can support all the people who are economically challenged. We can also extend the 41,000 hotel rooms we taxpayers are paying for through the next hurricane season so that those economically challenged individuals will have a place to live. Let’s pay for universal health/life/disability insurance for all people. Heck in Florida I wish someone would pay the car insurance of the last two people who hit me. Lets all make a pledge to work as hard as we can and pledge to live in squalor so that everyone who is poor in our country can have more stuff.
Hmmm “The Greatest Threat to America's Role in the World” is the gimmeee generation.
January 6, 2006 10:10 AM | Reply | Permalink
Well, the quote I presented -- and his broader discussion -- makes clear that he thinks that it's the growing population of baby boomer that's the problem, and that he thinks "trimming" Social Security and Medicare is the solution. You and I are in almost complete agreement. I am pretty sure Tom Friedman and you are not in complete agreement -- or at the very least, that he's not nearly as clear about what he thinks as you are.
January 6, 2006 10:12 AM | Reply | Permalink
I agree that Friedman was less than clear and anyone who discusses Baby Boomers should separate Social Security and Medicare. However, I find that Friedman bashing is often a both a substitute for thinking, I am not suggesting this about you, and it is also an attack on what seems to me the necessary centrist solutions to many of our problems in a world that is going to get more global, older, more technological and still needs the United States in a leadership role.
January 6, 2006 11:18 AM | Reply | Permalink
I think one solution is to maybe use the UN to prevent wars instead of fighting them. If we had defended Saudi Arabia from Saddam's aggression (containment) and helped create a regional response to his continuing threat, I think we would be much better off today. Instead what we did was essentially to try to erase the so-called "Vietnam Syndrome" by flexing our military muscle as the planet's lone superpower (even if other countries had to pay the bills for our exercise), thus making ourselves one big target (of concern if not outright enmity) for most of the rest of the world. Those who thought kicking Saddam out of Kuwait would deter terrorism (and there were some) have been proven to be completely wrong. Even better, we could have used the money spent to rescue the undemocratic regime in Kuwait to help ensure the strong growth of democracy in the former Soviet Union.
January 6, 2006 12:31 PM | Reply | Permalink
It seems to me it's the centrists who want it all ways and who won't make the hard choices. I'd gladly give up the global leadership role, which means buying half the global weapons arsenal, and spend it on universal health care. I just don't have that choice on my ballot.
January 6, 2006 3:31 PM | Reply | Permalink
It is an insult, for the baby boomers and others near that age, to be called the "give me generation" They have paid dearly, from their first pay check until their last, for Social Security and Medicare. Their employer matched their contributions as part of their wages. Most have paid into FICA for 47 years so we wouldn't be a burden to our children in our old age. We have paid extra to take care of the costs of the extra baby boomers for 42 years.
The whole thing comes down to the fact some want to earn profit from long term insurance. And the "no taxers" don't want to pay back Social Security.
Insurers are pushing hard to sell long-term-care insurance, offering new products and forging alliances with employers to make the policies more widely available in the workplace.
Congress helped boost those efforts last week when it passed new rules that tighten eligibility for Medicaid coverage of nursing-home costs. That means more middle-class Americans will likely be on their own later in life when it comes to paying for long-term-care needs, which can run into the tens of thousands of dollars for even a relatively short period.
Due to the new rules, If you have given money to your children, even many years before going into a nursing home, the