Congressman Gosar Working to Save Medicare

Press Release

The Medicare and Social Security Trustees recently issued their 2011 report which states that the Medicare Part A Hospital Insurance Fund is projected to be insolvent 5 years earlier than previously anticipated--just one year ago. U.S. Congressman Paul Gosar. issued the below statement in response to the report and stressed the urgency of opening up the dialogue with the American people so that together a solution can be put forward to save and preserve the program for future generations.

"The American people deserve to know the truth," said Gosar. "Medicare is going broke fast, even with the new taxes imposed last year. Ignoring the problems facing Medicare, including this troubling report which shows that Medicare will be bankrupt much earlier than previously thought, will not save this program and it will not get our nation back on a path to fiscal responsibility. There is no quick fix to the problem Medicare is facing, but if we do nothing then the program will not exist for anyone. If we work together to find a solution to the problem, then we can preserve and protect Medicare for our seniors and for our future generations. Now is the time to begin the discussion and bring everyone to the table- we have to open up the dialogue if we are serious about upholding the promises made to our seniors."

The Medicare and Social Security Trustees Report for 2011 stated that Medicare's trust fund will run out in 2024, which is five years earlier than they had predicted last year. Due to high unemployment and the shrinking economy, payroll taxes have greatly decreased and therefore Medicare Part A is projected to become insolvent by 2024. Just last year, in their 2010 Report, the Trustees predicted that Medicare Part A would be insolvent in 2029. It is important to note that the Trustees took into account supposed savings and new taxes from the recently enacted nationalized health care law, but they also stressed in their report that such savings are "very uncertain." Given this analysis, it is highly likely that Medicare could be insolvent even earlier than 2024 which means that the program would have to cut benefits sooner or risk complete collapse. The Medicare Trustees have to make certain assumptions about employment and taxes, as well as the number of eligible beneficiaries, to make these estimates. The problem in recent years is that the assumptions have not panned out.

Congressman Gosar believes that rather than cut benefits or see the program become insolvent, it is important for the American people to engage in an open and honest dialogue about the future of this program. Gosar firmly believes that promises made to America's seniors should be kept and that reforms to the program should be made to those under the age of 55 so that the younger generations also have access to Medicare for years to come. That is why he voted for the House budget plan that in fact took concrete steps to save Medicare.

Dr. Paul Gosar is serving his first term in Congress as the Representative to Arizona's First Congressional District. As a healthcare provider and small business owner, Gosar is focused on bringing jobs back to the district, reforming health care, reining in government spending and ensuring that his constituents are involved in the solution process. For more information, visit his website at www.gosar.house.gov.

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