Shell Game - Obama Proposes Bonus to Seniors of $250 While Insurance Companies Cut Subscribers Over Medicare Cuts and Prescription Premiums Increase

Obama and Carter, Striking similarities in Approach to Governing - photo neoavatra.com

The Obama Administration has called for a $250 per person stipend for the 2010 calendar year, in order to offset a zero cost of living increase in Social Security Payments. There will be no cost of living increase due to the “zero” inflation rate caused by a drop in fuel prices in 2009. Additionally, there is no plan on how to pay for the 13 Billion dollar “stimulus to seniors”; therefore, the monies will be added to the ever increasing deficit, increasing the risk to the U.S. dollar. Moreover, oil prices increased this past week, based on an increasingly weakened U.S. dollar which said increase will, in the end, be passed on to those consumers (seniors) through utility bills. It is reminiscent of the scenario under the Carter Administration, which saw a weakening U.S. Dollar coupled with increase in oil prices resulting in increased costs to to necessities such as groceries.

Additionally, cuts to Medicare already has several insurance companiescutting Medicare Supplement plans pushing those seniors to face an additional, often catastrophic, rise in health care costs – essential as Medicare alone is not sufficient. Add to the burden, the rise in Part D Prescription Drug Premiums in 2010 , which although slight, coupled with the threat of inflation, loss of medical coverage, increased consumer prices due to higher oil prices and a weakening dollar further adding to the mix, a $250 stipend appears to be more political than practical. The President is already under scrutiny over the 2010 general election; with overallpolls favoring the Republican Party in the majority of races. What is not addressed: the yet to be completed “health care reform” bill, which includes further cuts to Medicare

It appears, from the casual observers’ point of view, that the right hand does not know what the left is doing, either Obama is blindly following in Carter's footsteps or the President is still on the campaign trail; making promises and proposal designed to win hearts and minds, while having no clear method of delivery. Either scenario lends to a further erosion of confidence in this administration.