The Fiscal Cliff About To Expose Another Medicare Scam

Why would the fiscal cliff mean that doctors would suddenly take a thirty percent cut in their billing? Nothing was said about that last year when the deal was made. Part of the problem is that deal wasn’t made last year. It was made fifteen years ago and then hidden under fig leaves. Those leaves are going to fall away on January 1.

Inventing Another “Debt Ceiling” to Raise

Back to 1997, the basic bankruptcy of Medicare was too obvious for Congress to deny. They felt they had to do something about it. Basically, seniors were demanding using the program more and more, as is likely to happen when you give away free money. So Congress determined by law that every year that expenses went up above a certain amount, the Medicare reimbursements would go down to compensate. Basically, they tried to impose price controls on medicine in order to counterbalance the inherent price inflation and expansion that such “free money” programs naturally produce.

So, since 1997, every time that the Medicare expenses have expanded too much, Medicare has reduced the amount of money that they would pay for a procedure. This meant doctors became even less happy having to deal with Medicare. Medicare patients found doctors would not take their business or at least didn’t seem happy to do so. Medicare patients vote and make people in Congress want to make them happy in order to gain or stay in office.

In 2002, according to the formula passed into law in 1997, Medicare reimbursement was supposed to be cut four percent. Congress collectively decided they didn’t want to have to face voters who were angry about this, so they passed a law putting off the cut until the next year.

So now this is just like the “debt ceiling” that keeps being jacked up higher. Every year since 2002, Congress has put off the past cuts and also put off the new cut. So every year the percentage amount that reimbursements are supposed to be cut gets larger.

Right now, the amount that reimbursements are supposed to be cut is thirty percent. Unless Congress “does something” that is what will happen. Of course, all that Congress will try to do is put off more cuts. They aren’t just doing this for the sake of Medicare; they are doing it for propaganda purposes.

Hiding the Deficit

Imagine if, when Congress raised the debt ceiling they claimed they were going to bring it back down next year, and pay off all the extra debt, so that they really didn’t need to project that debt into the future. Basically, that is what has been happening with Medicare. Congress has not only refused to cut reimbursements, but has also calculated the projected deficit on the assumption that those cuts will be made next year. Every year they are not made and every year out official deficit hides yet another liability from public perception.

It is amazing to hear the liberal media admit all this, like all it means is that we must somehow invent antigravity in time for the fiscal cliff. They don’t even show curiosity about learning any lesson about economics or why the welfare state might be something that destroys the general welfare.


But there is no such thing antigravity. The only alternative to the fiscal cliff is a higher cliff downstream. We either cut spending or we cut more spending when we have fewer of our own resources. We either start reducing the deficit or we suddenly run out of money.

Our political leaders and their elite cheerleaders are plainly idiots, assuming some among them have not been actively planning to bankrupt the nation.



Posted in Debt, Economics, Economy, Healthcare, Politics Tagged with: , , ,
  • tampapatriot

    why don’t we start with Congress? They have voted themselves the finest benefits NOT available to any of the general population. And after a term or so they get LIFETIME
    retirement payouts. Let’s cut all those big benefits. Then all the gov’t. employees, either your contribute to your own retirement or you get nada! Then let’s eliminate a few unnecessary fed departments. We still have a rural electric dept? ? Where in this country is there no electric?
    Then cut all other dept’s. but 50%. and eliminate the ability of remaining depts. to have a personal bank that they can dole out monies. . i.e. EPA for green energies. If its a viable energy, let the marketplace make the investments, get the gov’t. out of mortgage business, it’s just another mess they have created and at a huge loss.
    Where is the congress person that would step forward and make bold cuts? Obviously NOT one.
    Tax food stamps, unemployment, create co-pays for all dr. visits. Demand patients pay for medical care, then submit their charges for reimbursement. That will certainly eliminate the fraud. Presently, no patient has any idea of what drs. submit to medicare, etc.
    I’m a 75 yr. old retired nurse. Think I couldn’t get a working budget and cut expenses?
    I think I could.
    Demand congress act on an actual budget, not the fuzzy math they are using. Claiming to cut future expenses that are not in existence is not just a sham, it’s thievery! ! !
    So rather than attacking medicare and law enforcement, let’s get to the source of a bunch of robbers and cut their pay, expense accounts and retirements first, then we can look at
    other entitlements.

    • STMA

      Notice how the new law preventing congress from insider trading suddenly disappeared- it was quietly voted down and not another word was said. Not to wander too far from the subject, it seems like the murder of Andrew Breitbart and poisoning of the coroner (or assistant- I’ve heard both) has dropped from the radar as well. Surprise! Anyone hear anything new?

      • violater1

        Not unlike the deaths of 3 homosexual alledged lovers of obama, 2 murdered assignation style and 1 died of HIV! What you wanna bet obama has it also and it is being hidden like all of the rest of his secrets!

  • Scientist5

    Don’t worry about his little item. After all it is free to you because the governent is paying for it. Not surprising, 50+% of our population will buy into this. The liberal propagandists will sell it
    Don’t worry about the fiscal cliff – Washington will delay it. I am curious as to how they will avert it. Certainly not by keeping all of the give aways and depending on the small amount of brain power in the US Congress. Further, having an incompetent President is no excuse.

    • soildude

      Ever since Bush signed the “Bush” tax cuts into law, the liberals have repeatedly said that those tax cuts only benefited the rich. If true, then the Libs should allow all of the tax cuts to expire… or were they lying to us back then?

    • danimal

      News flash!! There is no longer any gravity in DC. Everything is still held down though, only because Washington DC sucks

  • Moe L Curly

    There is only one fix. The FedGov must collapse.

  • Star-Dust

    I think all government take a cut in their pay checks and live like the middle class people and then we will not have a problem with the Fiscal Cliff. They are the ones who need to stop getting pay raises all the time, and they should not be touching and robbing other taxpayers money.They are no good and need to be removed from government.

  • Sha Jack

    why are you not emailing all this to your Representatives? Light a fire under thier a**es by receiving 1000’s of complaints or let them know they are out!

  • AmericansRon2U

    If you come home from work and discover that your house is filled to the ceiling from a backed-up sewer problem, do you pump out the sh_t or just raise the ceiling?

  • John Whittington

    Congress & Senate wants to talk about cutting Medicare and Social Security instead of other cuts that should be cut like War, Endangered pelicans and that crap. Wake up and see the stupidity of your ways!

  • Inluminatuo

    Ironic is it not that the very program that jeopardizes the General Welfare of our Economically dominant nation is named Welfare. These devils indeed are deceivers.

  • jim johnson

    The economic future of the USA is worst that just a “fiscal cliff”. When the US dollar loses its status as the reserve currency and given the hugh government liabilities there will be hell to pay.

  • afanaglenn

    As someone on medicare, I kind of resent having to pay so little for medical services. I pay nothing for a doctor office visit. I paid $40 for two cat scans recently. I should be paying more, as should all on medicare. It is no wonder there is a financial problem. Congress has simply given away the company store to get elected, again and again. Just another reason why there should be term limits. Why do we continue to re-elect whores.

  • Jerry J Brown

    stop expecting gov’t to fix itself. the gov’t IS the problem

  • chetohimler

    Let me get this right. The political party (democratic) that continuously tells its voter’s that the Republican Party wants to dismantle the Medicare Benefit program, is the actual party that is doing the worst harm to the medicare program? If I’m correct, Bill Clinton was President in 1997.

  • Silas Longshot

    That’s the entire point, they are actively planning to bankrupt the nation so that they can ‘rescue’ us with Marxism.

    It ain’t gonna be pretty when it all crashes down. Riots. Mayhem. Looting, killing and burning.
    Invest heavily in silver bullion, in hand.
    And brass.
    Google surviving urban crisis.

  • ilpatriot58

    Let me see……wasn’t Bill Clinton president in 1997??????? Ooopsie……………

  • LK

    THE REAL SCAMMERS ( The Plunge ! The Plunge ! Protection Team ? Ben Bernanke,Tim Gietner, Mary,Shapiro, Gary Ginsler look them up and see what you find out . Not to much to say right ? Just print the money then we don’t have to tax, why didn’t I think of that . The only way you would run out of money is when the trees and rags are all gone to make the paper. May be a very good idea there may be allot of Sunbruned Progressive Elites overexposed to the waves of reality .

  • awkingsley

    The cost of Allopathic Medicine is due to Allopathic Medicine’s place in health care as the medicine of last resort. Surgery is performed to correct the uncured ravages of chronic disease, and it is intolerably expensive.

    One of the suggested corrections for our expensive medicalcare is prevention. Now, think about this; when there are no Allopathic Medical cures for chronic disease, why would more physicals, check-ups and prevention be effective? If Allopathic physicians cannot cure chronic disease in the first place, how can they possibly know how to prevent the diseases they cannot cure? This is why we are barraged with all of the lame brained suggestions for dietary changes, only to see the same suggestions branded as deleterious to our health or at the least found to be ineffective a few years later. I do not
    believe that I have ever heard of an Allopathic health suggestion that was not later disavowed. Our nation can only afford medical care for those who are ill and in the case of long-term illnesses those who are in crisis. As tax payers, we do not need to be paying to send healthy patients to the doctor’s office.

    The problem of expensive medical care needs to be laid at the feet of the physicians and researchers. Allopathic Physicians are primarily mechanics, cutting out and replacing body parts instead of curing the chronic disease that produced the health problem in the first place. Patients are stuffed full of drugs with little efficacy, and the pharmaceuticals make a fortune off of tax payers without providing anything but minor relief of
    symptoms, if that. The major reason chronic disease is not being cured is because the pharmaceutical industry and physicians cannot make as much money by curing patients. A patient who never gets well is a real “Cash Cow”.

    Ancient Natural and Alternative Medicine had cures for chronic disease; however, treatment of chronic disease starts with expert diagnosis and ability to evaluate treatments. Allopathic Physicians, including Psychiatrists, have no diagnostic techniques, relying exclusively on limited laboratory tests and patient statements for diagnosis. Natural and Alternative Medicine uses 3 diagnostic techniques very successfully: Those techniques are Iridology, Kinesiology (Saliva DNA Testing), and Expert Oriental Pulse Diagnosis. Iridology is accomplished via a camera linked to a computer. Kinesiology (Saliva DNA Testing) can even be done from a distance by mailing DNA swabbed cotton balls to a physician experienced in the art. Expert Pulse Diagnosis can either be Chinese or Indian Ayurvedic, but I much prefer the Chinese method because the Chinese physicians appear to have never accepted the ancient dirty spiritual techniques into their medicine, unlike in Ayurvedic Medicine. Expert Pulse Diagnosis takes the most time to
    learn, but is absolutely necessary for any physician who wants to diagnose chronic disease or assess a patient’s status and the efficacy of treatments. A combination of these diagnostic techniques gives cross-verification to the physician. And, the first 2, Iridology and Kinesiology (Saliva DNA Testing), will aid the physician’s diagnosis, until he is expert in Oriental Pulse Diagnosis. (Distance pulse diagnosis can be accomplished via a lock of hair by keying in on [DNA], just as can be done in Kinesiology Saliva Testing.) Allopathic Physicians face severe incompetence in every area besides the Operating Room and treatment of infection, demonstrating a Dark Age lack of knowledge. Many people believe this ineptitude is due to a stranglehold on Allopathic Medicine by the pharmaceutical industry, but this problem is also due to arrogance and incompetence on the part of Allopathic Physicians. Federal Government involvement in Medicine and Medical R & D is also a major factor in the lack of cures for chronic disease. The solution is to get the Federal Government completely out of health care by providing Medicare users with a monthly stipend for purchasing private health insurance, medications, etc. If the stipend is too limited to cover all of those expensive drugs that are such a rip-off, then remember that necessity is the proverbial “mother of invention”. First, Allopathic Physicians need to learn the Natural and Alternative Medical diagnostic techniques then
    all of the old ancient medical formulas and techniques need to be researched. It is impossible to research efficacy of treatments without expert diagnostic techniques for value assessment on patients. I use an almost completely unknown acupuncture protocol
    (self-administered much like a diabetic gives himself insulin injections) that treats many chronic diseases, as well as other little known medical knowledge for the majority of my health care needs. My understanding of Natural and Alternative Medicine is both in depth and personal. Friends are now asking me to share my medical knowledge because there is no treatment available for chronic disease. Chronic disease treatment is “Do it yourself healthcare, or do without.”

    Medicare and Medicaid are also biasing against rehabilitative treatments even though rehabilitation promises efficacy when medications do not. Eliminate the high cost of medical care and nursing care by biasing toward any program that keeps patients ambulatory and able to self-care. Physical and Occupational Therapy Rehab programs have been cut for Seniors, and that is the wrong place to cut. Seniors need to be fully Rehabed so they can live on their own. Nursing care is prohibitively expensive, so patients need to be kept out of nursing care. Medicaid Rehab programs are also inadequate. If we are going to have any Medi programs, they need to bias toward what is actually proven to work and is necessary to keep patients functional.

    The major solution to high health care costs is for states to mandate medical schools to teach expert diagnostic techniques to first year medical students. If students are lacking in proficiency in expert diagnostic techniques at the end to the first year of medical school, they need to be washed out of the program. We can eliminate the majority of the expense in our medical system by insisting our states get tough on the way physicians are trained. Secondly, we need to be paying for doctor appointments only for illness. Third, turn all medical care back to the private sector with Federal Government stipends for Medicare insurance premiums.

  • Mindy Robinson

    The only sector of society who is entitled to entitlements are seniors! This society is all too happy to steal from those who paid into a system intended to supplement their retirements. What part of “Seniors paid for that SSI” does this society not get. Let’s cut welfare , let’s stop illegal immigration, let’s stop foreign aid, let’s stop gov from lining their own pockets, lot’s of money sucking black holes! SSI ended up being robbed to fund other entitlement programs, such as food stamps and housing for the young who are not responsible enough to think , Oh, I can’t afford to have a child , food stamps for illegals who know America is stupid enough to sacrafice their finicial well being. Stay away from SSI , that money was never intended to
    be part of the fund used for those who think the term “right” means they should get it for nothing!

  • Extrovious

    Why do we consider cutting benefits to our citizens, that our citizens have paid for, instead of ending billions of dollars being sent to countries that hate us & want to destroy us? Why do we continue to support the UN when we should cut off all funding & evict them from the US? That might save us a little money that we could really use here at home.

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