Medicare, the budget and funding

There seems to be a commonly held belief among media personalities, pundits and members of Congress that Medicare is in trouble.  They also seem to think that Medicare is the big problem we face with the budget.

Of course the major problem with the budget is unfunded wars and declining revenues due to tax cuts, but to take the second point first, Medicare costs have declined over the last 3 years.  Medicare costs have declined faster than any other measured medical cost and they have declined before the changes to reduce costs in the Affordable Care Act have taken effect.

As for the funding issue, the numbers show that with the current rate of funding Medicare will go broke in about 11 years.  That sounds ominous, except that the numbers have said that since Medicare started almost 40 years ago.  Medicare always seems to be on the edge but it won’t go over unless it is pushed.

Yes, reforms are needed because Medicare is not perfect.  But there is no crisis.  Like seemingly all of the recent economic crises this country has faced this one is manufactured.