Old_Gringo wrote:
Obama took 715 Million dollars from medicare to jump start obamacare. Is that why medicare isn't solvent or is hurting?
"The biggest savings from the Affordable Care Act come from reductions in the future growth of payments to hospitals about $415 billion over 10 years. Thats Medicare Part A. Income for Part A comes mainly from payroll taxes. If Medicare doesnt need to spend that income immediately, its credited to Part As trust fund, and Medicare gets a Treasury bond that it can cash in later. Anytime Medicare needs to cash in that bond, Treasury must pay it. Even if Treasury spent the original money on something else, it must pay the bond.
So, campaign claims that imply that Obama has taken money out of Medicare, and Medicare wont ever get it back, are simply not true.
At an Aug. 21 campaign stop in West Chester, Pa., Ryan said Obama and the Democrats turned Medicare into a piggy bank to fund Obamacare. They took $716 billion from Medicare to pay for their Obamacare program. On the other hand, he added, Republicans are being candid with our current seniors and saying stop the raid on Medicare.
Unfortunately for Medicare there isnt $700 billion in any kind of piggy bank to raid. The trust fund doesnt have anywhere near that much money the Part A trust fund only contained $244.2 billion at the end of 2011. And the president cant actually take money out of the trust fund. Medicare holds those Treasury bonds, and, as we said, it can cash them in anytime it needs the money.
The problem for Medicare is that the trust fund isnt going up its declining year after year. Some voters may get the mistaken impression that money they paid in to Medicare will pay their benefits once they retire. But as a practical matter the program functions as a pay-as-you-go system. And current income isnt enough to pay all current benefits.
Without the spending cuts in the Affordable Care Act, the Part A trust fund was expected to be exhausted in 2016. With the ACA cuts, that date was pushed back to 2024.
That makes the RNCs bankruptcy clock a bit curious. If the federal health care law hadnt included those cuts to spending, there would be even less time left on that countdown." (FactCheck.org)
Interesting how you keep answering my question with another unrelated
question Old Gringo. You are like a mexican jumping bean. Can you speak to ANY of these issues I raise?