Medicare for No One

You get a different perspective on things when you are on the beach  rather than toiling in an office.  That especially applies to political posturing of which lately there has been no shortage.

Among the slogans bandied about by some candidates in the just concluded election was “Medicare For All”. As a political slogan it had a certain appeal.  It’s a code word for single payor health insurance which is to say the feds or the state.

Already our newly elected governor here in California is backing away from his promise of such a system in California.  Like me on the beach he suddenly has a new perspective on the issue of financing healthcare.

My first reaction to the slogan was the result of my former career–how could healthcare professionals and organizations make it financially if all reimbursement was based on the Medicare model?  Medicare pays what it want to pay when it wants to pay without regard to the cost of providing the care.  The feds also have a vast bureaucracy devoted to making billing and receiving payment for services rendered as difficult as possible.

My second reaction was to remember that I am no longer involved in the provision of health care but am now as a retiree more likely to be a recipient of care.

What could be wrong with Medicare for all?  A lot as I have learned as a fairly recent Medicare beneficiary.  Those who casually advocate for Medicare for all do not seem to realize that it comes with a series of costs to recipients that can adversely affect a . monthly budget.  Medicare is not free care–far from it.

Medicare Part A which covers hospital inpatient services has deductibles which must be paid.  If you are fortunate enough to never have to be hospitalized this is not a problem.  There is no additional monthly premium for Part A. Whoopee!

Medicare Part B covers physician and other services.  This is an “optional” coverage but unless you are into do it yourself surgery you probably should opt into Part B.  Taking Part B requires the payment of a monthly premium which , depending on income level, can range from $135 to $460.  Those are not insignificant amounts, particularly for low income folks in retirement.

Medicare Part D is the Medicare Prescription Program which is designed to help cover the cost of drugs.  It comes with its own set of monthly premiums.  It also uses an income means test to set a monthly premium.  As an estimate I will use $20 a month.

Next comes optional so-called Medigap insurance which helps to cover costs not paid by Medicare.  If you get very sick Medigap insurance is a financial lifesaver.  The cost for this insurance depends upon the coverage and the insurance company selling the product.  The feds provide guidelines for this insurance.  $150 a month per person is a good estimate.

So at a minimum a low income retired couple is looking at monthly Medicare related premiums of $460 and it can go to $1370 or higher for retired couples with the highest income.

For those of us on the beach who can afford it Medicare works but like a lot of us it is creaky.  It is a jerry built design not suited as a model for effective healthcare financing.

“Medicare for All” does not address the real issue of affordability.  It would require the dismantling of the existing health insurance industry which, as dysfunctional as it can be, is still preferable to the monstrous, expensive  and voracious Medicare bureaucracy.  I won’t even go into the massive tax increases for both employees and employers which would be necessary.

Medicare for all?  I am for Medicare for no one other than retirees who paid for it with a career’s worth of taxes.   For all other citizens the country needs  a fundamental rethinking about how health care is financed and also incentives for individuals to adopt healthy lifestyles.

That’s not sexy.  That’s not easy. That’s why our elected representatives never get it done.  Slogans are much easier.  Ask California’s new governor if that is true.

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