America is Sinking Under its Own Entitlement Debt!

America’s Financial Health Care Future is Bleak!

US mandated programs outside the budgetary process are Social Security, Medicare, Medicaid as well as Income Support programs such as Food Stamps and Veterans Retirement program.  All of these programs are in severe financial shape and go to directly caring for Americans this is not including Comrade President Obama’s new unfunded mandate for health care.  It is anticipated that this new program will dwarf the following entitlement programs that are for all intents and purposes broke.

We are not even discussing the repayment of a $3.7 trillion dollar budget or the bail out trillions and the debt service to cover those loans.  The USA is sinking and foreign debt is the life raft!

Keep in mind today’s GDP is approximately $1.5 Trillion!

Social Security $14.8 Trillion:

Social Security is funded through payroll taxes. Through 2017, Social Security collects more in tax revenues than it pays out in benefits because there are 3.3 workers for every beneficiary. However, as Baby Boomers start to retire and draw down these benefits, there will be fewer workers to support them. By 2040, the Social Security Trust Fund will be bankrupt and 100% of benefits will be paid from that year’s payroll and general tax revenues.

The Unfunded Medicare liability is $74 Trillion:

Medicare is funded by payroll taxes and premiums which currently cover only 57% of current benefits. The remaining 43% is financed from general revenues. Because of rising health care costs, general revenues will have to pay for 62% of Medicare costs by 2030.

The Medicare Part A Hospital Insurance program, which collects enough payroll taxes to pay current benefits.

Medicare Part B, the Supplementary Medical Insurance program, and Part D, the new drug benefit, which is only covered by premium payments and general tax revenues.

Adding up Medicare Part A, Part B, and Part D in order to meet the obligations to Medicare current and future recipients would require $74 trillion in the bank today.

The unfunded Federal Medicaid liability – $673.7 by 2017 billion

Medicaid is a health and medical services program for certain individuals and families with low incomes and few resources. Primary oversight of the program is handled at the federal level, but each state: Establishes its own eligibility standards, determines the type, amount, duration, and scope of services, sets the rate of payment for services, and administers its own Medicaid program.

As the economy weakens more workers are becoming unemployed and many are enrolling in Medicaid because they have no alternatives for coverage.  As state revenues are declining they are faced with more demands for Medicaid services and fewer resources to pay for them resulting in a deepening worsening fiscal situation for states.

Medicaid represents 40 percent of Federal government general revenue spending on health care and 41 percent of such spending by States. Federal spending for Medicaid accounted for 7.0 percent of the entire Federal budget in 2007 and is projected to account for 8.4 percent by 2013. Over the next 10 years, expenditures on benefits are projected to increase at an average annual rate of 7.9 percent and to reach $673.7 billion by 2017.

All Other Mandatory Programs – $357 billion

These programs include Food Stamps, Unemployment Compensation, Child Nutrition, Child Tax Credits, Supplemental Security for the blind and disabled, Student Loans, and Retirement / Disability programs for Civil Servants, the Coast Guard and the Military