Medicare, Social Security Owe Up to $52 Trillion to Current Retirees and Workers

Press Release:

DALLAS, Dec 03, 2008 /PRNewswire-USNewswire via COMTEX/ --

Debts Up To Three and Half Times Greater Than Entire U.S. Economy
If the federal government stopped the Medicare and Social Security programs tomorrow -- collecting no more payroll taxes and allowing no more accrual of benefits -- it would still owe up to $52 trillion to those who have already earned these benefits, according to a new study by the National Center for Policy Analysis (NCPA).
"The numbers are staggering," said Andrew Rettenmaier, an NCPA senior fellow and coauthor of the study. "No one thinks we are going to end these programs," he said, "but if we account for federal obligations the way private pensions and state and local governments are required to, the federal government owes up to $52 trillion (in current dollars) as of today."

To put the numbers in perspective, the size of the entire U.S. economy is $14 trillion. The newly released study determined that: --

An estimated $9.5 trillion is owed to current retirees -- an amount
equal to almost $250,000 per person 65 years of age and older in 2008.

-- Adding the liability owed to those nearing retirement (55 and older)
more than doubles the accrued debt to $20.6 trillion.

-- Adding the benefits accrued by younger workers brings the total to as
much as $52 trillion. The beneficiaries include all retirees, as well as
anyone in the workforce above 22 years of age.

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Nothing is Free: The Problem with Free Drug Samples

Many altruistic doctors give patient drug samples to uninsured patients; thereby, helping the patient to receive the proper medication and save the patient money. Doctors may not be aware that they are actually causing the cost of prescriptions to rise for the uninsured by having a plethora of prescriptions at hand in the office.

This problem does not affect Medicaid directly, as its common practice for Medicaid patients to receive generic prescriptions.

David P. Miller, M.D., lead researcher and internal medicine physician at Wake Forest Baptist said, that "One possible explanation, Miller said, is that because Medicaid patients rarely receive samples, doctors' prescribing decisions for these patients were based purely on what drug they thought was best and not on what samples happened to be available in the closet."

For the uninsured or those that receive free samples; they can be doing wonderfully on the prescribed drug given to them in sample form. But what happens when the samples at the doctor's office run out? Filling the prescription at the pharmacy would crash their budget and may cause health problems.

Overall, patients need to speak with their doctor about their financial and insurance situations. Doctors can then prescribe patients with low-cost/generic drugs for treatment; instead of what is readily available in the office supply closet.

How do you feel about free samples at the doctor's office? How do you think this will affect Medicare patients?

Sources:
News-Medical.Net
CNN
US News & World Report

Medicare Made Easy

In a latest release, Experion Systems has launched a new edition of their PlanPrescriber tool as reported by MarketWatch. Created by Glen Urban, a Professor at MIT, this new tool gives seniors access to “unbiased advice” for determining their Medicare Insurance plan. It is a free online tool designed to save seniors time, and money, and starts by simply entering a zip code. Those without access to Internet, can also call 877-900-4824. As Ross Blair, Experion Systems CEO, stated:

"The rising costs of prescription drugs is a real burden for seniors on a fixed income. PlanPrescriber allows seniors to switch to the optimal plan based on their individual needs. Seniors can typically save 25% to 50% of their annual prescription drug costs by joining the optimal insurance plan."