Health Plans Could Aid, Hinder Efforts To Fund Social Security

IBD Editorials ^ | August 17, 2009 | JED GRAHAM

[Kaslin]

While a health care overhaul takes precedence, the Obama administration will eventually tackle the Social Security issue, top White House economic adviser Lawrence Summers said last week.

In reality, Social Security is on the table right now, though few seem to recognize it.

The demographics of an aging population and slow-growing work force are the primary forces behind Social Security's coming shortfalls, but spiraling health care costs are no small factor. There will be fewer workers per retiree, and a bigger portion of total compensation will be devoted to tax-free health care benefits.

Social Security's actuaries project that untaxed compensation, primarily health coverage, will increase from 19% of total pay to 31% over the next 75 years.

Helping Or Hurting?

Changing this trajectory — by changing the tax treatment of health care — could have a major impact on Social Security's finances. And this idea is central to the debate over paying for near-universal medical coverage.

Oregon Democratic Sen. Ron Wyden's Healthy Americans Act — whose 13 co-sponsors include five Republicans — would end the tax-free status of employer coverage and convert the savings into a tax credit to make insurance more broadly affordable.

[Kaslin]

[freekitty]

Translation. “Get rid of the baby boomers”.

[Kansas58]

The “death benefit” under Social Security is $250.00.

Much less than the average monthly Social Security benefit.

Much less than the $830.00 a month government average cost for Medicare beneficiaries.

I think Obama has a plan: He wants us all to DIE!

[ladyjane]

Social security won’t be a problem. Just ration care for the senior citizens. Make sure they’re not eligible for the swine flu shot. Don’t repair their broken hips. Limit how much chemotherapy they can get. Social security problem solved.

[niteowl77]

Translation: “Get rid of the baby boomers”.

Plenty of them seem dumb enough to beg for it.

[mo]

This is what it comes down to...the bankers got all the cash last fall....and we’ll play a 9 months’ long “Healthcare Bill Game” to craft a legislative device that gets us out from under the Federal Obligation to the BabyBoom that can no longer be met....and so what if we go from screwing the 70 million BabyBoomers to the entire country. Maybe the BabyBoom won’t take it quite so personal... /s

[Enterprise]

The Democrats plan for Americans is surprisingly simple. Raise the retirement age for all occupations to age 65. Retire. Die. (Congress and Unions exempted)

[Kaslin]

Also there will be no cost of living increase for us senior citizens

[peeps36]

We are drowning in debt and our idiot politicians keep spending and adding to that debt. The day will come when they are forced to either stiff the debtors or stiff everybody by revaluing the dollar to a lower level. There is no other way around this multi trillion dollar nightmare. You know you are in trouble when politicians use the word trillion on a daily basis. It's funny because I don't remember hearing that word used much in the past, especially when referring to US debt.

[pankot]

Perhaps fewer workers per retiree because we ABORTED 50 million of them?