Class Notes January 8,2009

The Political risks associated with cutbacks are too great to expect a major change in the way Social Security works. Still, Social security reform is a major issue.

1)Most Americans don't count on Social security alone as their retirment income. Only about 49% think it will help them at all when they retire. Keeping n mind that Social Security has NEVER REALLY BEEN a FULL tertirement package for some time now. Only 1700$/month or 20000$/year is not enough solely to live.

2)In the 2000 and 2004 elections Republicans proposed to privatize Social Security, allowing individual workers to invest their own payroll taxes in the stock-market to take care of Retirment.

3) The Democrats also preposed a private investment plan but theirs would be in addition to the existing program rather than a reform of it.

4) Congress has been unable to come to agreement on reform. President Bush's privitaization plan does not enjoy enough private support with the public to be pushed through Congress.


The US is the only industrialized nation without a universal healt-care system.
1) Medicare is the system for all people 65 and up.

2) despite entrenced opposition to the governments ntrusion in the field of medicine, medicare was passed in 1965

3)Mediare is a three part system
-Compulsory hospitilization insurance for the eldery comprizes Part A
-Voluntary government-subsidized insurance for physician pees comprizes medicare part B
-Medicaid is the last part, which is comprehensive health care for the poor.
4)Medicare is an expensive program that has massive public support from the eldery. Part of this massive support is no doubt due to the fact that maedicare Part A is compusory and many private insurance plans offered by emploers dry up as workers reach age 65 even if they continue to work.

5) as medicare costs have risen the government has required certain incentives to cut costs; those incentives may reduce the quality o care.

6) Nearly everyone aress that the system needs to be imporived.
-About 16% of americans under the age of 65 have NO insurance coverage
-Amerca spends more money on healt care than any other nation
-After years of resistence from established special interests the ussue of Universal healt care became a focal point of the Clinton administration, but no proposed solution has fained clear majority support.

The Pressures that affect medicare and medicaid have also affected the private healt care industry.
1) Health insurance providers have extended coverage to routine rpeventative health care while limiting the individuals' freedom to choose whena nd what type of medical specialists to see.
-Health Maintenence Organizations (HMOs) and preferred provider organizations (PPOs) are now the most carried forms of health insurance.

2)Substantial numbers of people aren't terribly staisfied with coerage . In response to patient dissatisfaction the Patient's bill of Rights was a popular compaign issue. Though Republicans and Democrats have differed on the details, the point was to five patients some type of resource against insurace companies that denied treatments recommended by a physician.

3) Prescription drug care coverage has become a hot issue as the number of aged and chronically ill people as grow. As a result, medicare has added a prescription drug plan within the past year when priviously medicare did NOT cover these needs.