December 6, 2010
Medicare and Medicaid
Medicaid and Medicare was created and called the Social Security Act of 1965 to provide coverage for medical treatment for qualified individuals and their families. Medicaid is a program that is jointly funded and managed by the federal and state governments that reimburse hospital and physician for providing care to qualified patients who cannot afford medical expense. To qualify for Medicaid he or she must be a United States or resident citizen which, includes low income adults and their children, people with certain disabilities and senior citizens. “Medicaid and Medicare is overlooked by the Center for Medicare and Medicaid, they monitor how the states funded programs” (Center for Medicare and Medicaid Services, 2010.pg 2). The states administered the programs and each state sets their own guidelines for those who can qualify for Medicaid.
Three Major Factors
In the past five years Medicaid and Medicare have had some changes to their delivery of health care. The Deficit Reduction Act (DRA) of 2005, (HCAHPS) Hospital Consumer Assessment of Healthcare Providers and Systems implemented in 2006 and in 2010 President Obama signed into law the Patient Protection and Affordable Care Act. These changes will continue to affect anyone who is thinking about retiring or already on Medicaid or Medicare.
The first major change to Medicare and Medicaid came from the Deficit Reduction Act of 2005 significantly changes of policies would shift the cost to the patients and also limiting the health care coverage for low-income families. DRA will reduce federal Medicaid spending by the cost of premiums; cost sharing of benefits and assets transfers of would make up about half of the savings for Medicaid and Medicare. “DRA will reduce federal Medicaid spending by $1.9 Billion over the next five years with 70 percent coming from the increased cost sharing and...
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