John C. Goodman

Within minutes of the announcement that Paul Ryan would be Mitt Romney's running mate, the Democratic attack machine shifted into high gear.

"Paul Ryan will destroy Medicare as we know it," claimed the ads. "So will Mitt Romney." Be afraid. Be very afraid.

But isn't ObamaCare what seniors should really be scared of? Yes, indeed. And to hide that fact, the Obama forces are telling five big lies.

Lie Number One: Health Reform Is Good For Seniors.

Millions of taxpayer dollars (that's our dollars) have been spent on Andy Griffith television ads and other advertisements trying to convince seniors that they are big winners under health reform. If the Federal Trade Commission (FTC) could claim jurisdiction over these ads, a lot of Obama administration folks would be headed for the hoosegow.

In fact, 40% of the cost of giving subsidized insurance to young people is being paid for by reduced spending on the elderly and the disabled. For the next 10 years, the spending reduction totals $716 billion. That's no small change.

The Obama ads and the White House television talking points stress new benefits for seniors: a free annual wellness exam and the eventual closing of the "donut hole" for drug coverage. What they conceal is that for every $1 spent on new benefits, seniors will lose $9 in other spending — which gives a whole new meaning to the term "bait and switch."

Consider people reaching the age of 65 this year. Under ObamaCare, the average amount spent on these enrollees over the remainder of their lives will fall by about $36,000 at today's prices. That sum of money is equivalent to about three years of benefits. For 55 year olds, the spending decrease is about $62,000 — or the equivalent of six years of benefits. For 45 year olds, the loss is more than $105,000, or nine years of benefits.

In terms of the sheer dollars involved, the planned reduction in future Medicare payments is the equivalent of raising the eligibility age for Medicare to age 68 for today's 65 year olds, to age 71 for 55 year olds and to age 74 for 45 year olds. But rather than keep the system as is and raise the age of eligibility, the reform law instead tries to achieve equivalent savings by paying less to the providers of care.

Lie Number Two: Seniors Will Not Lose Any Medicare Benefits.


John C. Goodman

John C. Goodman is Senior Fellow at The Independent Institute and author of the widely acclaimed book, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and National Journal, among other media, have called him the "Father of Health Savings Accounts."