Sunday, July 24, 2011

Means-testing Medicare is a bad idea

by Paul Krugman:

The usual argument against means-testing — which is entirely valid — is that it (a) doesn’t save much money and (b) messes up a relatively simple program. The reason it can’t save much money is that there are relatively few people rich enough to be able to afford major cost-sharing. Meanwhile, the good thing about Medicare, as with Social Security, is precisely that it doesn’t depend on your personal financial status — you just get it. Means-testing would turn it into something much more intrusive, like Medicaid. The third point is, if you want the well-off to pay more, it’s just better to raise their taxes.

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