The media continue to insist that the presidential candidates have a plan to keep Social Security fully funded past the years when it is first projected to face a shortfall (2041 according to the trustees, 2046 according to the non-partisan Congressional Budget Office [CBO]). Given this obsession, it is surprising that the NYT can write an article discussing insurers role in the Medicare Advantage program without ever once mentioning Medicare's projected shortfall. While CBO projects that SS will be fully solvent for almost three decades after the latest date that the next president can leave office, Medicare is first projected to run short of money in 2019. The Medicare Advantage program contributes to this shortfall since it raises costs by an average of 12 percent for the beneficiaries enrolled. Of course this extra cost means profits for the insurance industry.
--Dean Baker
