US Debt Crisis Solved! Means Testing

I'll be addressing two areas in this action item where there can be significant expense savings--just to get started in an deficit reduction effort: social programs and military expenditures during peacetime, i.e., when there's no major war. Certainly, more areas could be enumerated.  I aver that even in these two areas cost savings per year should be enormous!

Social Programs
1. Medicare
The late Senator Ted Kennedy advocated means testing as a way to control Medicare costs.  In this I believe he was following what many hospitals already use, viz., some ability to pay evaluation.  A patient submits some financial statement of his net worth, including income.  On that basis the hospital charges him.

Currently, Medicare operates as an insurance policy where the member pays a monthly premium.  The premium is not tied to the actual costs of the member's medical care as projected.  Obviously, many members can afford more toward their medical care under the system than what the premiums they pay would suggest.

 2.  Social Security
They say the social security system will bellly-up by 2040,  This can readily be avoided by raising the limit of  taxable income that's subject to FICA.  Indeed, there really ought to be no limit of income that's not social security relevant.  The same could be applied to income from dividends and properties, which may not always be the case now.  Wallah, the system becomes solvent!

I detect that several Congressmen are already thinking along these lines.  May I encourage them to do the obvious!

3.  Senior and school cafeteria programs   
Typically, a participant in these programs pays nothing, though there's the caveat that it would be nice if he doled out a fraction of the cost of the meal.

Participation in these food programs could be also means tested.

4.  Medicaid 
Now here's a  program that's got it right.  I know because I participate in the program, if the state I'm in has it.

If accepted into the program on the basis of need, the member signs a  contract that upon his death, the government can recoup from the deceased's estate as much as the government's costs incurred, outside of Medicare coverage, for his healthcare benefits while living.

In many states, I understand, the welfare system is so structured, too.

The Military       
By extension, the same line of thinking can be appplied to the military.  In peacetime, the military budget should reflect the situation of peace.  Specifically, the question, 'how important is a particular military project to the country's defense, as a peacetime measure?' should be a guiding principle.

The current treaty with Russia, being debated this very day, conforms to this principle.  There's no reason for countless missles and nuclear armaments in Rusia or the US when no war exists, even a cold one.  However, I know there's a lot of people in the US who wish we'd make Russia our enemy once more!

Another glaring phenomenon reflected in the military budget is a politician's desire for aggrandizement of military contracts to benefit his state or his activities.  A Congressman may insist that there be several bases in his state, for example---though it's very unlikely there will be a military strike there, even if hell freezes over!


An afterthought: I've heard recently that Italy doesn't use means testing.

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