...Medicare Funding Crisis David Holt Healthcare Finance Ron Evans July 20, 2013 At the heart of America's fiscal crisis is the impending collapse of our entitlement system. And the primary cause of that looming collapse is the explosion of costs in Medicare, the federal program that provides health insurance to every American over 65. Without major reforms of the program, there is simply no way for us to address the federal deficit, contain the national debt, or save Medicare itself from collapse. Medicare's woes are partly demographic. In 2030, when the last of the Baby Boomers retires, there will be 77 million people on Medicare, up from 47 million today. But there will be fewer working people funding the benefits of this much larger retiree population: In 2030, there will be 2.3 workers per retiree, compared to 3.4 today and about 4 when the program was created. But a bigger part of Medicare's troubles is the rapid inflation of healthcare costs. In 2010, the per capita cost of providing healthcare services in America increased by 6.1%, according to Standard & Poor's, while overall inflation increased by only 1.5%. According to the Department of Labor, over the past decade, healthcare inflation has risen 48%, while inflation in the broader economy has increased by only 26%. Providing an increasingly expensive service to a rapidly growing population, while drawing on a declining pool of taxpayers is a recipe for fiscal disaster. The...
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...Rolunda Baker Medicare Crisis Medicare is another project of Lyndon Baines Johnson Great Society. Spending is obviously out of control. On June 5th the government announced that the Medicare Trust Fund would go broke if something isn’t done with the spending (nationaldebt). In 1965 when LBJ started Health and Medicare, the Total Federal Spending for the year was $101 Billion. By the year 2000 we will spend over 4 times than amount on Health and Medicare alone, and Medicare will equal the annual spending for Defense (CNN). Medicare was a program that was not acceptable gracefully by the Liberal/Socialists. You might keep this in mind when we get to the point where we have to choose what we CAN do versus what we would LIKE to do. According to CMS the government predict that if healthcare keeps going the in the current direction the cost of Medicare will have exceeded defense spending, unlike other Healthcare systems the US healthcare has been a problem for the government as well for it has added to the enormous debt the country already has. Another major problem of Medicare is that the government does not regulate Medicare enough (Medicare). Medicare affects all different aspects of different programs. For instance Medicare affects Social Security (national debt). Social Security has already exceeded Defense spending by almost double. Just like Medicare, Social Security is being abused. So many people abuse the system, by that i mean people take advantage of it. It is different...
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...Throughout the 1980s and early 1990s,business and the government trimmed whatever fat there was from the healthcare system.In 1997,Congress passed the Balanced Budget Act in an attempt to reform Medicare and trim waste from the system.But cuts went billions of dollars beyond expectation.Now, the healthcare system is in a financial crisis. Health premiums aren’t paying for the cost of services.Hospitals are being squeezed by managed care companies that are having their own financial troubles.One consequence is the closing of hospitals. MERCY HOSPITAL–DETROIT’S STRUGGLE The east side of Detroit is among the most troubled urban areas in the United States, struggling with a multitude of social and economic challenges.Mercy HospitalDetroit was an important anchor in this neighborhood,not only providing access to healthcare,but also security,employment, leadership,and a place for social interaction.It relied heavily on Medicare, Medicaid,and other government sources for its business—nearly 80 percent of its total admissions. In the early to mid-1990s,Mercy Hospital–Detroit found it increasingly difficult to maintain its fiscal health;operating losses were supplemented by the hospital’s parent company,Mercy Health Services (MHS).1Then,in 1997,the Balanced Budget Reconciliation Act severely reduced Medicare and Medicaid reimbursements. The already struggling hospital was devastated by the cuts.Losses of $1.5 million per month began to mount.The federal and state funding cuts similarly affected...
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...From: Alisha Clarke, Chief of Staff Date: 9/9/2012 Re: Medicare Funding Crisis Congressman Hughes, Below, please find the prepared document for the panel discussion. Introduction As you all may know, Medicare is currently the object of scrutiny in regards to its funding and how it is effecting the current healthcare situation. There are many perspectives in which to look at this program to decide whether or not it is actually a positive attempt at resolving current healthcare issues. First and foremost, I believe that our society is misinformed about the current status of the Medicare program. So I will take time out to address key questions in regards to the program. Is Medicare in a state of crisis? Are radical measures necessary to preserve the program? Medicare is so definitely in a state of crisis as we speak. “particularly for Medicare, which is so far underwater it would take several United States’ to pay off just what is owed right now to those who have already paid into the system (and who are therefore owed benefits at some point).” (Emanuel, 2012) It seems that the detrimental effects of the Medicare system will indeed have the most impact on the current senior citizen population, baby boomers, and the military. The reason for this is because the accessibility to physicians seems to be decreasing which could definitely hurt these populations. Physicians who currently participate in the Medicare program are enduring payment cuts which might have them...
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...per capita on health care, and it has the most advanced medical technology system in the world, still it is not the healthiest nation on earth. The system performs so poorly that it leaves 50 million without health coverage and millions more inadequately covered (Garson, 2010). Discussion History of Medicare In 1945, the United States president Harry Truman decided to bring to the attention of the Congress. The message was in an attempt to develop a universal plan that would be applicable to all United States citizens. The Congress contemplated the bill that would establish a healthcare plan. The debate for a comprehensive plan carried on for twenty years. The prolonged wait made president Truman give up on the idea. Even though the president had given up on the healthcare bill, Social Security system and a number of other participants continued the efforts. After two decades of struggle, in 1965, the Medicare and Medicaid plans became legislation after the Congress approved the bill. President Lyndon Johnson’s vision of a “Great Society” and Harry Truman’s initial efforts materialized. It would only be fitting for Harry Truman to be the first person to enlist in Medicare. This Act became applicable to the general public and has been serving since its introduction in 1965. There is currently a debate as to what changes does the Act need to address the changing needs (Shi & Singh, 2009). Health care professionals...
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...Is Medicare Sustainable? Brian Arguello Grand Canyon University: HCA 530 Introduction to Health Care Finance June 8, 2016 Is Medicare Sustainable? Medicare has been the primary health care provider for people over the age of 65 or disabled Americans for over 40 years. The program is in constant change because of new medical technology, advanced delivery systems, and rising costs. Despite the program being in continual transformation, many believe that Medicare is in need of major reform. The obvious question to be asked is, what is the future of Medicare and is the program sustainable? Assessing Medicare’s financial status is straight forward. Looking at Medicare parts A, B, and D individually, one can actuate whether the claims for each part can be paid, making the financial status an actuarial issue. Keep in mind that sustainability and financing are different. A program may be sufficiently funded but not sustainable, making the question of sustainability difficult to assess. According to Foster and Clemens (2009), “Sustainability for Medicare is a judgement about whether the program, as currently constructed, will meet the demands of all affected parties today and in the future” (p. 85). It is important to assess the program on its abilities to meet the needs of the patients and healthcare organizations but cost and future costs are the biggest concerns for all involved parties. The sustainability is of interest to both for-profit and not-for-profit healthcare...
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...Fewer employers are offering health insurance in America. Under President Obama, the current administration firmly believes that comprehensive reform should reduce long-term growth of health care costs for businesses and government, protect families from bankruptcy or debt because of health care costs, guarantee choice of doctors and wellness, improve patient safety and quality of care, assure affordable, quality health coverage for all Americans, maintain coverage when you change or lose your job and end barriers to coverage for people with pre-existing medical conditions. Not everyone agrees with the Obama administration. However, there has been major controversy with a new President (Obama), regarding how to fix the health insurance crisis in America. Major health care reform proposals have been the following: (1) single payer plans that call for the federal government to impose health insurance taxes and directly administer health benefits for everyone; (2) universal health insurance plans that require employers to pay all or most of the cost of their employees’ insurance and offer government subsidies for the poor, uninsured and small businesses and (3) open access plans that do not mandate coverage for everyone but require insurance companies to accept all applicants and the government to expand Medicaid to cover the uninsured and low income persons. Many...
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...Course Project The Baby Boomers Impact on Medicare Abstract This project will address the baby boomers impact on Medicare. Baby boomers have changed the world in which we live and the lens through which we view it. The aging of the baby boomers, which is roughly one third of the population, will continue to usher in dramatic changes across most business sectors and areas of our lives in the years to come. The Issue A. How is Medicare Funded? Medicare provides health coverage for 45.2 million people. In 2008, Medicare spent $468 billion for covered items and services. Medicare is paid through two trust fund accounts held by the US Treasury. These funds can only be used for Medicare. The first trust fund is the Hospital Insurance (HI) Trust Fund. It is funded by payroll taxes paid by most employees, employers, and people who are self-employed. Other sources, such as income taxes paid on Social Security benefits, interest earned on the trust fund investments, and Part A premiums from people who are not eligible for premium free Part A. The second trust fund is the Supplementary Medical Insurance (SIM) Trust Fund. It is funded by funds authorized by Congress, premiums from people enrolled in Part B and Part D, and other sources, such as interest earned on the trust fund investments. B. Medicare Plans People with Medicare may be able to get health care coverage in several ways. Original Medicare is a fee for service plan managed by the Federal...
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...Budgetary Analysis Heather Horning HCS/550 August 18, 2014 Elaine Bobo Budgetary Analysis The Medicaid program is one of the largest sources of health insurance in this country in addition to employer-based health insurance and Medicare. Medicaid delivers crucial medical related services to the most at risk populations in society. The importance of Medicaid's part in providing health insurance cannot be exaggerated; “the Medicaid program covers millions of low-income women, children, elderly people and individuals with disabilities” (U.S Department of Health and Human Services, 2000). Funding for Medicaid is limited through various federal policies, leaving much of the program’s budget burdened on the individual states to make necessary spending cuts in order to provide the funds needed for the demand of the program. Budgetary decisions need to be thoroughly reviewed before any immediate action is taken as these decisions can create a domino effect on other programs and their participants as sections of this paper will describe. Medicaid Overview Medicaid is a cooperative federal and state program with a common goal to provide a vital service for the general public. “Medicaid is the largest source of federal revenue for states. Medicaid funds support health care providers, jobs and state economies overall” (Kaiser Family Foundation, 2013). Every state institutes its own eligibility criteria, benefits platform, payment rates and program organization under the broad federal recommendations...
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...Timeline: History of Health Reform in the U.S. VIEW: Early 1900's 1930 – 1934 1935 – 1939 1940 - 1945 1945 - 1949 1950 - 1954 1955 - 1959 1960 – 1964 1965 – 1969 1970 - 1974 1975 – 1979 1980 - 1984 1985 - 1989 1990 – 1994 1995 - 1999 2000 – 2004 2005 – 2009 2010 1912 Teddy Roosevelt and his Progressive party endorse social insurance as part of their platform, including health insurance. 1912 National Convention of Insurance Commissioners develops first model of state law for regulating health insurance. 1915 The American Association for Labor Legislation 1912 Teddy Roosevelt and his Progressive party endorse social insurance as part of their platform, including health insurance. 1912 National Convention of Insurance Commissioners develops first model of state law for regulating health insurance. 1915 The American Association for Labor Legislation Early 1900's 1921 Women reformers persuade Congress to pass the Sheppard-Towner Act, which provided matching funds to states for prenatal and child health centers. Act expires in 1929 and is not reauthorized. (AALL) publishes a draft bill for compulsory health insurance and promotes campaigns in several states. A few states show interest, but fail to enact as U.S. enters into World War I. The idea draws initial support from the AMA, but by 1920 AMA reverses their position. 1927 Committee on the Costs of Medical Care forms to study the economic organization of medical care. Group is comprised of economists...
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...(individual and institutional) of which governmental spending is just one component of the NHE total. For example, an insured’s copay as well as a hospital’s new cancer center construction costs all count towards the NHE total. Governmental spending is limited to expenditures from the public sector (i.e. Medicaid, Medicare, VA and single disease funds) ( | The Nation’s Health Dollar 2013: Where It Went(Expenditures Table) | Category of expenditure | % allocated to this category (1 pt each) | | Answer the questions below including citations to your sources. (3 pts each) | Program administration and net cost | 3a. 7% | | 3f. What does this category include? “Administrative costs of the health insurance system include (a) spending by public and private health insurers other than actual payments to providers and (b) costs incurred by other system participants, including providers, employers, and consumers, in dealing with insurers” (Merlis, 2009, pgs. 2-5). The net cost of private health insurance is the difference between health premiums earned and benefits incurred (Center for Medicare and Medicaid Services, 2014, para.15). What might make it go up or down in future years? In the current climate, if the King plaintiffs prevail, the ACA subsidies would...
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...Joyc Furtak HLT-205 June 2, 2013 Daisy Savarirajan U.S. Health Care Time Line Health care dates back almost to the beginning of time. Each new time period brought new procedures to us here in the United States. For some reason the United States fell behind as far as these new procedures went. Other countries were more developed health care wise. The same holds true for today. This is a brief time line of some of the health care eras we have seen here in the United States. From the days of Butch Cassidy and the Sundance Kid era and up until the late 1800’s other countries, France, Germany and Great Britain to name a few, were way ahead of the United States in health care education and practice. This added to the fact that medical practices in the U.S. were considered primitive. Doctors were more a tradesman than a profession. The local barber could be the town doctor and dentist all rolled into one. There were barely any hospitals and no health care insurance at all. Health care services were paid for by each individual that needed the services. An apprenticeship was the main form of education and training around 1870. There was no University training given at this time. Although they were practicing physicians taking on the apprentices, these physicians had very little medical training themselves. In order to offer training to larger groups of interested candidates, the practicing physicians began opening medical school. Not only would they be able to make money...
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...Kimberly Clark Professor Camille Castorina ECO 405-001 February 1, 2015 Social Security and Medicare are critical federal programs, in America, that promotes income stability among millions of households. Social Security does so by providing a steady stream of income to replace wages lost due to retirement, disability, or death. Medicare provided health benefits to the elderly and disabled. While both of these programs make sense, both are struggling to keep up with their growing demands. Social Security is a tax that every working individual and their employer pays. These taxes do not go into a “personal” account; as one might think. Instead, the benefits that are received by the current retiree is being paid by today’s workers and today’s worker will be paid by the next generation of workers; a pay-as-you-go-system. Unfortunately, for retirees, benefits will not be received by the amount he/she pays into Social Security but on their earnings history and retirement age. Social Security is a hot topic, one that our current administration is unwilling to address; even with a looming presence of issues by 2020. A program that has been plagued by funding issues caused by our elected government officials. To quote the Social Security Administration itself: "Social Security's total expenditures have exceeded non-interest income of its combined trust funds since 2010. ... Since the cash-flow deficit will be less than interest earnings through 2019, reserves of the combined...
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...Social Security and Medicare History Present Configuration Future Projection GERO100 March 31, 2012 Hopefully we will all be physically able to work until the age of 65, collect retirement and Social Security and live an enriching life until we leave this world. Not all companies financially support their employees with fully funded retirement plans so it is left up to the individual to actively participate in saving for their future. When someone reaches retirement age, if the finances are there, they are usually only a fraction of what they were making as a full-time employee. This is when one hopes of having Social Security and Medicare benefits to supplement our retirement income for a more stable financial future. There are several reasons the Social Security Act was passed in August 1935. The elderly were living longer due to the availability of better health care, autonomy in workplaces to make jobs easier on individuals, and the modernization of our country’s water systems. Due to this increased longevity in the lives of the elderly, they were also more poverty stricken. An intention of the passage of the Social Security Act was to reduce the burden of loss of income to retired workers aged 65 or older. (Quadagno, 2008) It also included provisions for unemployment insurance, old age assistance and aid to dependent children. Benefits were to be paid based on the primary worker and was to be funded through payroll taxes deducted from the worker’s...
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...of Americans, mostly the elderly who are now out of the work force. The Social Security Act was a major turning point in American history (William, 2007). Today the U.S. Social Security system has been in the news a lot lately. While politicians throw around dramatic words like “crisis” and “bankrupt,” regular Americans have more mundane concerns. Social Security has assisted to defend millions of employees from scarcity in their elder years, but demographic truths have transformed over the last seventy years and are still altering. (Smith, 2010) If Social Security does not transform with them, the system will be incapable to fulfill its guarantees to tomorrow’s retirees and will load the next generations, our children and grandchildren, with hard taxes. The President would let Americans save some of their Social Security taxes in personal retirement accounts that they own and that Congress can never legislate away. Personal retirement accounts would strengthen Social Security by assisting all US citizens to raise their retirement income and pass on a nest egg to construct a better fiscal future for their households. (Smith, 2010) Several Social Security professionals think the system is in crisis because it will soon be incapable to fulfill its guaranteed distribution payments to qualified retirees (Koitz, 2003). Republicans and Democrats tend to have extremely different concepts not only about how the Social Security system should encounter this disaster, but they also vary...
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