The net obligation through the infinite future for all partipants for Medicare Hospital Insurance as of January 1, 2009 was $36.4 trillion. The net obligation through the infinite future for all partipants for Medicare Hospital Insurance as of January 1, 2009 was $6.3 trillion. The difference is because of Obamacare.
Has anyone else noticed? Somehow I detect an accounting trick. Either that or Obama is the greatest President of all time!
For comparison sake, the total unfunded liabilities for Medicare and Social Security on an infinite time line were 75.0 trillion as of 1/1/2010. (From http://www.gao.gov/financial/fy2010/10frusg.pdf)
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Update: Aha, as I suspected it is an accounting trick. Basically what is going on is that:
1) Medicare is being gutted and Medicaid is being vastly expanded. (From https://www.cms.gov/ActuarialStudies/Downloads/PPACA_2010-04-22.pdf, Medicare is being cut by $502 billion over 10 years, and Medicaid is being increased by $463 billion. Obamacare has other costs, and the total increase over 10 years is $310 billion).
2) The costs of Medicare is done on an actuarial basis whereas Medicaid is appropriated annually. If Medicaid were accounted for the same way, it would have an unfunded liability of $35.5 trillion. See http://leedsonfinance.com/2011/04/03/worthless-treasuries/.
So in conclusion Medicare is being cut by $30.1 trillion over the long run while Medicaid is being increased by $35.5 trillion.
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