MediCare: Too Good to Last

From Charlie Cook, at National Journal:

“Social Security and Medicare Taxes and Benefits Over a Lifetime,” a study by C. Eugene Steuerle and Stephanie Rennane for the Urban Institute that was released in January, demonstrates quite vividly why senior citizens like Medicare so much. A single man earning the average wage, $43,100 in 2010 dollars, who retired in 2010 will pay an average of $55,000 in Medicare taxes over his lifetime and will receive $161,000 in Medicare benefits. A similarly situated woman will pay the same $55,000 in Medicare taxes but will get $181,000 in Medicare benefits (because women live longer than men). A one-earner couple in that situation, again paying $55,000 in Medicare taxes, would receive $342,000 in benefits. If you’re a Medicare recipient, why wouldn’t you think that the program as we know it is a great deal?

But, obviously, it’s not sustainable. With federal budget deficits soaring and worries about a national-debt crisis in our future rising, how is it possible to keep Medicare as we know it? If the federal government, over the long haul, isn’t in a position to make up the gap between what people are paying and the benefits they’re receiving, Medicare taxes have to go up, benefits have to be cut, or deductibles have to be raised on high-income retirees.

That's the key nugget, but read it all. Democrats are getting a free ride on this politically, despite the fact that the GOP's got the honest approach to policy. As usual.

RELATED: See also Andrew McCarthy, "Not Entitled."