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From 1990 to 2011, Medicare’s average solvency projection was just over 14 years. This is according to the Kaiser Family Foundation and the annual reports from the Boards of Trustees of the Federal Hospital Insurance and Federal Supplemental Medical Insurance Trust Funds.
There is no question Medicare needs fixing. The biggest problem with Medicare is that it is a high-risk pool. Insurance will be expensive per person when the only people in the insurance risk pool are 65 and older or disabled. That makes it fairly remarkable that Medicare has managed to survive for as long as it has. The reason it has survived is because of a vast supply of political will and public support. But sooner or later we are going to have to address the root issue, high risk. All insurance works by having diversified risk whether it’s car insurance or health insurance. Therefore, diversifying the risk pool when it comes to Medicare means extending it to all Americans, or ‘Medicare for all’. Having one insurance payer makes the financing of health care simpler and more efficient. Removing profits from the financing side of health care means nobody is deciding what is and isn’t covered based on shareholder sentiment and CEO bonuses. Removing profits means less overhead, hence less costly health care. Fixing health care in this country means extending the same coverage your grandparents have to all Americans.