Count on seniors to save the country

After listening to the President speaking to Congress, it seems to be clearer that he is counting on senior citizens to save the country. 

First, since the Crash of ’08, interest rates have been driven downward to next to nothing for conservative investments.  Hey, Mr. President and Mr. Federal Reserve, many of us senior citizens were counting on earning some interest from our retirement savings to help pay for our living expenses.  And what do we get?   An annual yield of less than 1%.  1% may be good for banks and for people who have adjustable mortgages, but not for seniors.

So many of us are now forced into drawing out capital, our retirement savings, rather than the interest it earns.  Meaning, of course, when interest rates rise, our returns will be even less because our capital will be less.  But maybe the President is also counting on seniors to figure out how to live on a lot less.

Second, Mr. Obama keeps talking about eliminating Medicare Advantage programs, the HMO plans for seniors that have zero premiums and minimal co-pays.  Yes, I understand that they have turned out to be subsidies for insurance companies.  But for many seniors, a zero premium has been one way to cut costs during the current economic situation.   When Medicare Advantage programs are banned, those of us in these plans will be forced to sign up for Medicare Supplement insurance plans from companies like Anthem, AARP, etc., which have a monthly premium.  And there go our costs up again.

And there is more.  During the speech this week, the President mentioned that by eliminating Medicare Advantage programs, the government could spend more money covering the prescription costs for seniors.  This statement really set my hair on fire!   I have spent a lifetime taking good care of myself and take one little prescription that costs about $5 a month.   A lot of good increasing payments for prescription costs will do me!  It sure will make the drug companies happy, however.

So let’s tally the count on these changes.  The winners seem to be drug companies, insurance companies, banks, people with adjustable mortgages.  The losers:  seniors with retirement savings, seniors who have taken good care of their health.  

I guess all of us seniors just have to keep this in mind:  the President is counting on us.

A disclaimer:  I am a lifelong Democrat.  I voted for Mr. Obama in both the primary and general election.

[During a conversation this morning after I posted this, a friend said that the Medicare Advantage plans would not be eliminated under the Obama Health Reform plan.  Only that the subsidies to the insurance companies would be reduced.  I am sure that would lead the insurance companies cancelling the Medicare Advantage plans as soon as they possibly could.  The end result: the same.]