Social Security/Medicare

Save Social Security From Bankruptcy - Provide Private Retirement Options

Feldstein states that under the current Social Security system, each generation now and in the future loses the difference between the return to real capital that would be obtained in a funded system and the much lower return in the existing unfunded program. Shifting to a privatized system of individual mandatory accounts that can be invested in a mix of stocks and bonds would permit individuals to obtain the full real pretax rate of return on capital. This would mean a larger capital stock and a higher national income. 

Conservative assumptions imply that Social Security privatization would raise the well-being of future generations by an amount equal to 5 percent of gross domestic product (GDP) each year as long as the system lasts. Although the transition to a funded system would involve economic as well as political costs, the net present value of the gain would be enormous-as much as $10-20 trillion.

Remember this - that under the current Social Security system when a person dies, the funds that they have paid into the system will go to the Federal Government. Under a privatized Social Security system, the funds would go to the family or to a designated beneficiary.

I support the freezing of the current Social Security system and phasing the system out. No new participants would be allowed into the current system and the impact of attrition and a balanced budget would take care of funding until the current system is closed. All new participants would be offered various privatized plans.

Medicare -

Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over, or who meet other special criteria. It, like the Social Security program, is about to implode.

I support replacing the Medicare program with Medical Savings Accounts.

Medical Savings Accounts

I support the freezing of the current Medicare system and phasing the system out. No new participants would be allowed into the current system and the impact of attrition and a balanced budget would take care of funding until the current system is closed. All new participants would be offered various Medical Savings Plans.

Remember this - that under the current Medicare system when a person dies, the funds that they have paid into the system will go to the Federal Government. Under a Medical Savings Account system, the funds would go to the family or to a designated beneficiary after the person dies.

Under the current tax system, this is the way that the medical savings accounts would operate. 

A Medical Savings Account (MSA) is a type of health insurance plan that combines both a tax advantaged personal savings account and a high-deductible health insurance policy.

Individuals must purchase a health insurance policy before deposits can be made into the savings account, up to a limit set by law.

The user of the MSA plan is expected to pay for routine health care costs from the MSA plan’s savings account.

If the user’s medical spending meets the cost of the insurance policy’s deductible, the insurance becomes available to meet other covered medical costs. Annual deductibles for individuals and families will vary, depending upon the particular type of MSA plan purchased.

Spending on qualified (allowable) medical expenses from an MSA is not subject to federal taxation. (”Qualified medical expenses” are defined as those so designated by the Internal Revenue Service.)

Any money remaining in an MSA plan’s savings account at the end of a tax year can be rolled over without penalty into the next year’s account.