Julian's Jabberings

Books reviews, current events, and other musings

Tuesday, May 02, 2006

Medicare phrasing

The San Jose Mercury News has a Medicare story that begins,

Medicare's long-term financial woes deepened over the last year as the program's main funding source for hospital care is projected to go broke in 2018 - two years sooner than predicted last year, according to an annual report by the program's trustees.
However, when you read further, it turns out that the 2018 is the first year in which Social Security benefits exceed revenue. In reality,
The program will no longer be able to pay benefits at promised levels in 2040, one year earlier than predicted last year.
That's like saying that someone is broke the day after they retire, since their expenses exceed their income. Unfortunately, most people will take the newspaper headline Study: Medicare to go broke in 2018 (which doesn't appear in the online version) at face value.

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