Message
Message: Below please find outline of current Medicare cost concerns as well as some history on the program as well as some plan options to cutting overall costs.
Medicare is facing a major financial crisis. The federal government subsidizes medical care for more than 45 million elderly and disabled Americans through Medicare. Medicare is the third-largest federal program after Social Security and defense, and it will cost taxpayers about $430 billion in fiscal year 2010. In the federal budget, Medicare is a fast-growing program, with spending likely to double over the next decade and to surpass Social Security spending by 2028. Several researchers suggest that approximately one-third of Medicare spending is misused. [ (Edwards, 2010) ]
Even though Medicare is a welfare program, being charged co-payments and other additional fees, it’s clear to see why many elderly people may believe that it’s an insurance plan. Although it’s been known as welfare program, led by the government there is controversy regarding this. AARP Vise President, Joyce Rogers stated AARP is focused on protecting Social Security and Medicare for the millions of beneficiaries who have paid into the systems over their working lives. Rogers’ statement follows:
“Medicare is not a welfare program. Seniors pay into Medicare their entire working lives based on the promise that they’ll have secure health coverage when they retire. Applying a means test for their earned benefits would erode the popular support that has sustained these programs for years and made them so effective in helping older households.
“The small minorities of seniors who are wealthy also contributed more to these programs throughout their working lives, and continue to pay higher taxes in retirement to support them. Also, in contrast to plans for those under age 65, premiums for Medicare Part B and Part D already are pegged to income. “We believe the right way to strengthen Medicare is to improve the quality and lower the cost
Medicare is facing a major financial crisis. The federal government subsidizes medical care for more than 45 million elderly and disabled Americans through Medicare. Medicare is the third-largest federal program after Social Security and defense, and it will cost taxpayers about $430 billion in fiscal year 2010. In the federal budget, Medicare is a fast-growing program, with spending likely to double over the next decade and to surpass Social Security spending by 2028. Several researchers suggest that approximately one-third of Medicare spending is misused. [ (Edwards, 2010) ]
Even though Medicare is a welfare program, being charged co-payments and other additional fees, it’s clear to see why many elderly people may believe that it’s an insurance plan. Although it’s been known as welfare program, led by the government there is controversy regarding this. AARP Vise President, Joyce Rogers stated AARP is focused on protecting Social Security and Medicare for the millions of beneficiaries who have paid into the systems over their working lives. Rogers’ statement follows:
“Medicare is not a welfare program. Seniors pay into Medicare their entire working lives based on the promise that they’ll have secure health coverage when they retire. Applying a means test for their earned benefits would erode the popular support that has sustained these programs for years and made them so effective in helping older households.
“The small minorities of seniors who are wealthy also contributed more to these programs throughout their working lives, and continue to pay higher taxes in retirement to support them. Also, in contrast to plans for those under age 65, premiums for Medicare Part B and Part D already are pegged to income. “We believe the right way to strengthen Medicare is to improve the quality and lower the cost
Cited: AARP. (2011, July 18). AARP to the President: “Medicare is not a welfare program.". Retrieved November 6, 2011, from AARP: http://www.aarp.org/about-aarp/press-center/info-07-2011/aarp-medicare-not-welfare-program.html C. Millett, C. J. (Aug. 2010). "Impact of Medicare Part D on Seniors ' Out-of-Pocket Expenditures on Medications," . Archives of Internal Medicine , 1325–30. Edwards, M. F. (2010). Downsizing the Federal Government. Retrieved November 6, 2011, from Cato Institute: http://www.downsizinggovernment.org/hhs/medicare-reforms Lonchyna, S. J. (n.d.). The Evolution of Medicare and Medicaid Services. Retrieved November 6, 2011, from http://www.cwru.edu/med/epidbio/mphp439/Medicare_Medicaid.htm