Solving Generational Theft and the Unfunded Medica

Solving Generational Theft and the Unfunded Medicare Liability

Seniors are continuing to retire at 65 even though life expectancy is rising. Expected lifespan for 65 year old people exceeds 100. The result is a ballooning unfunded liability. Suppose you offered seniors a buyout of their Medicare rights as a lump sum into a health savings account.

I expect that the buyout could be pennies on the dollar.

If the program included investment control of the his, the knowledgable investor might think he could grow his funds faster than the government does (or doesn't).

Suppose a auction were held with individuals bidding to buyout the government's responsibility, with the lowest percentage winning. The result could be a large number of knowledgable investors driving their own health savings account, with a large lump sum in the buyout of their rights. In addition this same large number of health care consumers developing an alternative heath care market.

Some individual companies have shown the ability of low cost healthcare when the insurance industry and the government workers are cut out, which they would if the consumer is directly purchasing the health services. And the consumers envisioned would be able to pioneer this approach with the large up front funding guarding against catastrophic illness.

As the market builds, services to enable less capable consumers to follow in the initial consumers tracks. Medicare beneficiaries are generally life's winners. They can best survive the additional risk of leaving the government system. As the initial consumers are using the system, the evaluate the break even point of the percentage bid for the medicare rights buyout.

If, as I expect, the initial auctions result a higher than optimum percentage, the pioneers will have won, but the government still would have reduced its unfunded liability, and the true percentage would have been determined for the bulk of the buyouts. The growing market and auxiliary services will have reverted the previous rapid rise of healthcare for the participants to lower healthcare costs

This demonstration will reduce the unfunded liability of not just by the buyout amounts but for the remainder of the Medicare clients due to the lowering of health care costs.

This proposal takes advantage of the utilizing talents of self selected experts (based on previous investment success) currently waisting away in retirement. This proposal removes the many negative incentives in current legislation. This proposal expands opportunity for persons to create value in the auxiliary services to be needed by the pioneer consumers. This proposal is a free market solution to a government created problem.

If this works step and repeat for Social Security, and Medical.


Dave Farnsworth