Thompson Discusses Report on Medicare
Washington, D.C. – Earlier today, the Trustees of Medicare issued their annual report, warning again of the program’s major financial shortfalls. Representative Glenn ‘GT’ Thompson delivered the following response during a radio address.
To Listen: Click Here
Remarks as delivered:
"Today's report is another stark reminder that Congress’ failure to move forward with reforming our current entitlement programs will only lead to insolvency and unfulfilled promises. That is not the United States I know and love.
“We need to make sure there are appropriate reforms made to Medicare to ensure our aging populations will have health and retirement security and the peace of mind that accompanies both. A failure to act means that those who have spent their lives budgeting for their golden years will face drastic cuts even sooner than previously estimated.
“To the President and some of my colleagues in the House and Senate that have asserted that honest proposals to reform Medicare and preserve its benefits are in some way attempting to end it, I say, now is not the time for partisan bickering. Now is the time for leadership.
“Now is the time for serious action to avert bankruptcy for these critical entitlement programs so that we can fulfill the promises made to our seniors and protect health and retirement security for all Americans. The people deserve as much.”
Additional highlights from the Trustees Report:
· For the sixth straight year, the trustees issued a funding warning showing that “the Medicare program is taking a disproportionate share of its funding from general revenues, thus crowding out programs like defense and education.”
· The report confirms that the Medicare program is already contributing to the federal deficit – and will continue to do so for the next decade.
· Since 2008, the program has run cash flow deficits; 2011 exceeds $32 billion.
· The only thing keeping the program afloat financially is the sale of Treasury bonds in the Medicare Trust Fund; when those bonds are cashed, it increases the deficit.
· According to the report, even bond issuances will be exhausted by 2024, causing the Centers for Medicare and Medicaid Services Medicare Hospital Insurance Trust Fund (CMS-HITF) to officially be insolvent.
· By comparison, the CBO’s March 2011 baseline projects insolvency for the CMS-HITF in 2020.
· While last year’s report predicted insolvency in 2029, this year’s trustees report should see an acceleration of insolvency – prolonged unemployment has lent to lower payroll receipts and less incoming revenue to the trust fund.
To Listen: Click Here
Remarks as delivered:
"Today's report is another stark reminder that Congress’ failure to move forward with reforming our current entitlement programs will only lead to insolvency and unfulfilled promises. That is not the United States I know and love.
“We need to make sure there are appropriate reforms made to Medicare to ensure our aging populations will have health and retirement security and the peace of mind that accompanies both. A failure to act means that those who have spent their lives budgeting for their golden years will face drastic cuts even sooner than previously estimated.
“To the President and some of my colleagues in the House and Senate that have asserted that honest proposals to reform Medicare and preserve its benefits are in some way attempting to end it, I say, now is not the time for partisan bickering. Now is the time for leadership.
“Now is the time for serious action to avert bankruptcy for these critical entitlement programs so that we can fulfill the promises made to our seniors and protect health and retirement security for all Americans. The people deserve as much.”
Additional highlights from the Trustees Report:
· For the sixth straight year, the trustees issued a funding warning showing that “the Medicare program is taking a disproportionate share of its funding from general revenues, thus crowding out programs like defense and education.”
· The report confirms that the Medicare program is already contributing to the federal deficit – and will continue to do so for the next decade.
· Since 2008, the program has run cash flow deficits; 2011 exceeds $32 billion.
· The only thing keeping the program afloat financially is the sale of Treasury bonds in the Medicare Trust Fund; when those bonds are cashed, it increases the deficit.
· According to the report, even bond issuances will be exhausted by 2024, causing the Centers for Medicare and Medicaid Services Medicare Hospital Insurance Trust Fund (CMS-HITF) to officially be insolvent.
· By comparison, the CBO’s March 2011 baseline projects insolvency for the CMS-HITF in 2020.
· While last year’s report predicted insolvency in 2029, this year’s trustees report should see an acceleration of insolvency – prolonged unemployment has lent to lower payroll receipts and less incoming revenue to the trust fund.
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