Medicare pays out more than it takes in. Medicare doesn't pay nursing home costs. Medicaid pays for nursing homes, but a patient must deplete all assets first. The affluent can buy high priced long term insurance. Cutting Medicaid risks putting nursing homes out of business.
Private health insurance costs rise every year, but payroll taxes for Medicare have not changed in years. Medicare is, in essence, prepaid insurance.
We should raise Medicare's payroll taxes to more reflect insurance. A smaller amount over a long period of time is easier to swallow than increasing premiums for the retired. Offset it with the earned income credit for the working poor.
To make it more palatable, include nursing home benefits so families do not have to deplete life savings for long term care.