Every politician wants to make changes. You’ll never hear a politician say, “Let’s just keep everything the way it is.” They have to paint a dark picture and then position themselves as the solution to the problem. Obama, like everyone else, has run all of his campaigns this way, as well. So it shouldn’t be any surprise that every once in a while they actually do make changes. But are they good changes or bad?
When Obamacare was passed into law, we heard all kinds of promises on how it would not impact Medicare for retirees. Surprise, surprise, politicians appear to have broken that promise.
According to www.breitbart.com (http://www.breitbart.com/Big-Government/2013/02/20/With-Election-Over-Obama-Announces-Medicare-Cuts-To-Fund-ObamaCare):
“In an announcement on Friday, however, the Obama administration revealed that it would be significantly reducing funding for Medicare, a move that one health insurance analyst said “would turn almost every plan in the industry unprofitable.”
Specific to this news, Medicare Advantage, which is currently utilized by over 25 percent of retirees, would be hit hard.
According to health care analyst Carl McDonald, the new rates proposed by the Obama administration will have the net effect of reducing payments to Medicare Advantage plans by 7 to 8 percent in 2014. McDonald projects:
If implemented, these rates and the program changes CMS [Centers for Medicare and Medicaid Services] is suggesting would be enormously disruptive to Medicare Advantage, likely forcing a number of smaller plans out of the business and creating disarray for many seniors.
According to Richard Foster, former chief actuary to the Medicare program, ObamaCare’s cuts to Medicare Advantage will likely force half of its current participants back into the old Medicare program, originated in 1965. It is estimated that this change will cost Medicare enrollees an average of $3,714 in 2017 alone.”
An increase of $3,714 each year in Medicare payments, courtesy of Obamacare.
I’ve been telling people for years that you need to assume that your costs for healthcare will increase. Medicare is unsustainable as it’s structured today. This is just the beginning.
Every time news like this comes out, it becomes more important than ever that you have stable and predictable streams of retirement income so that you are best positioned to address these issues.
I keep hearing in the news that the majority of people don’t like Obamacare. I always thought that it was odd that people didn’t like it, yet they had no clue as to what it would actually do. Well, get ready, changes are now taking place and it won’t take long for seniors to understand the impact of Obamacare.
When politicians are running for office, they like to establish a theme song to rally around. As Obama finishes out his presidency, I doubt he will be humming Toby Keith’s song “How do you like me now”!