Medicare And Death

Kevin Drum, blogging at Mother Jones, comes up with a great idea to help solve medicare’s cost problem:

So Medicare stays roughly the same, but every time you receive medical care you also get a bill. You don’t have to pay it, though. It’s just there for accounting purposes. When you die, the bill gets paid out of your estate. If your estate is small or nonexistent, you’ve gotten lots of free medical care. If it’s large, you’ll pay for it all. If you’re somewhere in between, you’ll end up paying for part of the care you’ve received.

Obviously this gives people incentives to spend all their money before they die. That’s fine. I suspect they wouldn’t end up spending as much as you’d think. What it does mean, though, is that Medicare has first claim on their estate, not their kids.

A great idea. It has my support!

2 Responses to “Medicare And Death”

  1. J says:

    How is it paid for if you have an estate worth little when you die?

  2. Then it’s not. It’s paid for by those who have a large enough estate when they die. It’s kinda like an indirect means testing.

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