Issues in Financing Medicare
With the rising number of uninsured Americans, health care has been a major issue in the United States. Due to “The Great Recession” and the growing number of Americans who found themselves unemployed, the number of uninsured Americans has rose from 46.6 million in 2005 to a record number of 50.7 million in 2010. Many of these uninsured again have lost their employee health insurance benefits or they made the decision to cut their health insurance just to cut back costs. The rising prices of health care have also been a concern over the last few years. With new medical technology and increasing prices of prescription drugs, it has become hard for one particular group to keep up. Our elderly. For most of the elderly, they do not have employer-paid insurance to depend on. They depend on Medicare for their medical and prescription needs. But with the increasing number of baby boomers becoming eligible for Medicare, the future of the Medicare fund is looking very dim. Problem Issue
When Americans retire, the last thing they should have to worry about is how will my health care be paid for? With healthcare becoming a big issue lately, Americans need to be very knowledge about their options for healthcare and more importantly, where will the future going for that healthcare plan. Medicare has become a hot topic because of the state of the Medicare trust fund. This trust fund was created by the U.S. Department of Treasury to maintain the funds that are dedicated for Medicare. The future of this trust fund is very important to the healthcare future of our disabled, retired and elderly Americans. To fully understand what needs to be done to help Medicare stay afloat; we need to first understand what Medicare is and how it is funded. We then can determine solutions and recommendations that can be made to solve the Medicare funding crisis. Literature Review
The United States Dept, of Health and Human Services issued a pamphlet every year to new and old beneficiaries of Medicare called, Medicare and You. This pamphlet outlines what Medicare is, the benefits and the cost of each part of Medicare. The brief Financing Medicare: An Issue Brief, which was printed by the Kaiser Family Foundation, outlines how Medicare is funded and explains in detail how Medicare is trying to keep the trust fund plentiful. The brief also details how healthcare spending has increased and how this spending has affected Medicare beneficiaries. In the article, Medicare's Deepening Financial Crisis: The High Price of Fiscal Irresponsibility, Robert Moffitt discusses how increasing financial costs and the implementation of the Prescription drug policy have caused the increasing financial costs of Medicare. The American Medical Association issued an article, Medicare’s Immediate and Long-Term Problems Demand Attention, which discusses how Medicare trustees have become increasingly concerned on the solvency of the Medicare trust fund and what options they have in order to get back on track. Austin Frakt wrote in his blog in The Incidental Economist of how the Academy of Actuaries wrote solutions on how the government can solve the Medicare financial crisis. This article clearly gives great reasons as to what the government can do to help Medicare beneficiaries.
Richard Johnson’s article, Changing the Age of Medicare Eligibility Implications for Older Adults, Employers, and the Government discusses the pros and cons of increasing the Medicare age to 67. It shows how well Medicare can recover if small changes occur within the plan. Robert Pear’s article, Recession Drains Social Security and Medicare that was published in the New York Times discusses how the current “Great Recession” has caused more problems for Social Security and Medicare financial plans. It discusses that because of the recession, Medicare’s trust fund depletion date has moved up 2 years. Problem Analysis
Medicare is a...
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