End Medicare

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I’ve talked about ending the Social Security and unemployment programs. Today, I attack another sacred cow, Medicare.

Medicare is the most expensive program on the federal budget. It is also the most bankrupt. (By Medicare, I am lumping all the programs where the federal government pays for medical care of the people.)

To understand how it works, think of it as the largest insurance program in the history of the world. It’s supposed to help the elderly get medical care. However, all it does is build up endless red tape that endangers the life of the elderly and makes doctors rethink seeing elderly patients at all.

First, understand that medicare has defined the entire medical industry, out of necessity. In order to make sure that money was spent wisely, they had to define what “wise” meant. This means that a horde of bureaucrats, some of whom might have medical training and experience, get to choose what procedures doctors are allowed to follow. All those procedure codes and all the useless tests and administrative overhead we see at hospitals and clinics come directly from this. They do these things simply to make the bureaucrats happy.

Second, understand that medicare is a Ponzi scheme, the largest Ponzi scheme in the history of the world. The money you put into medicare isn’t held for you. Nor do you get a certificate or some kind of claim on services based on how much or when you pay in. Instead, your money is spent immediately to help the people who are currently benefiting from Medicare. In turn, you expect that more people will have jobs in the future to support you. If your hope doesn’t bear fruit, you will be left out in the cold, with nothing. Ponzi schemes are not only immoral and evil, but they are a danger to our society. They give people false hope when there is none. When Ponzi schemes come crashing down, as they always do, everyone involved loses, especially those who have paid but never received.

Medicare and Social Security are crashing down as we speak. There is no way we can ever afford these programs. We are left to debate, as we are today, about who will get cut and how.

Third, understand that Medicare is prone to fraud on truly epic scales. Because the patients who see doctors are not exchanging money for services rendered, but sending pieces of paper off to some bureaucracy somewhere to get reimbursed, it is a simply matter, really, to eliminate the patient from the equation altogether. Imagine a grocery store that could get paid without a customer ever stepping in. Medicare makes this possible. We do not know how much fraud has occurred nor how much is occurring today. That’s because we have no way of knowing if a piece of paper that flows into the system represents actual services rendered or something else.

My proposal to fix Medicare is really simple. We abolish it, allowing the free market, tempered with charities, to handle the problem of taking care of the elderly.

If you think that is too extreme, then let me try a different method. We write a check, every month, to every one on Medicare, money which they can use either to buy insurance for themselves or to see a doctor for themselves. Or, we simply write a big check and balance the books once and for all, telling the elderly that that’s all the money we have and we’ll never write another check. Those who are too young (50 and younger), get nothing. Those who are older get more based on how old they are and how much longer they are expected to live.

Once the money is paid out and the accounts settled, we close down shop, never to open it again.

If we can completely eliminated Medicare and Social Security from our federal budget, we will have cut the budget by over 40%. If we combine in there the social programs, we will have cut the budget by over 55%.

All of these programs represent moral hazards. Some of them are based on Ponzi schemes. We cannot tolerate a government that pays people to make poor decisions, and punishes those who make good decisions. We especially can’t continue to support Ponzi schemes we already know are bankrupt.

 

 

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