In 2010, Obama signed the Statutory Pay-As-You-Go Law which provides a stop gap passage of any change in taxes that would increase the Federal deficit by a certain percentage. But it contains over 150 exceptions including; Fannie Mae, Social Security, Health Care Trust, low income housing… etc. In addition, since its enactment it has been waived 16 times by Obama, meaning it wasn’t really a law at all and was never intended to be, it was – fluff.

It is this Law that Democrats and the media keep hyping as proof positive why Trump will cut Medicare funds for beneficiaries next year. Creating a number was also important in order to sell their story; $25 billion the first year and $400 billion over the next decade. WOW! Sounds awful.

But the problem is this entire argument is also – fluff.

Both Ryan and Trump have clarified numerous times that they are going to tackle Medicare, but from the standpoint of fraud and overpayments to hospitals and doctors. Secondly, Medicare is not a target ‘entitlement’, what the media seems to not understand is that Welfare is the target. And forcing people back to work is the objective which was the point of lowering the corporate tax rate – more jobs.

The other part of the story emerged this past summer as the Chicken Little chorus began to circulate the statement that ‘Medicare will be insolvent by 2029’, citing a report by the Trustees. Of course, like everything else that gets crypto-hyped, the entire story was dramatically edited to fit the Sky Is Falling agenda. Not to mention that this funding ‘shortage’ didn’t suddenly occur during Trumps first 5 months as President.

Oh Brother!

The report specifically addressed Medicare’s Hospital Insurance which can pay 100% of hospital costs thru 2029 and which point, if all things remain the same, they will only pay 88%.   These numbers are based on a model that measures payers into the system compared to retirees. Blame the Baby Boomers. The generation of baby boomers will gradually increase putting more pressure on Medicare, and then decrease as we all die. C’est la vie.

There are two options available; 1) increase the amount and/or the threshold for employee contributions, or 2) lower hospital costs by stipulating a fixed amount they all can charge for a procedure. Which is what Trump wants to accomplish and what he and Ryan have stated over and over and over again.

The Media doesn’t WANT to get it. So they have created their own story. And that’s called – Fake News.

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