Health Essays

Medicare And Its Financial State/Health Essays Medicare And Its Financial State/Health Paper Medicare And Its Financial State/Health Paper Medicare is planned health insurance generally for older persons over 65 year old, younger persons with special medical conditions or persons with permanent Kidney failure. Medicare was formally signed into law on July 30, 1965 and has served the American people ever since. It is important to note that it took another year for beneficiaries to sign up for coverage on July 1, 1966. Medicare was operated primarily by the federal government and subsequently other Medicare plans such as Health Maintenance Organization plans (HMOs) and Preferred Provider Organization plans (PPOs) are offered through private organizations. In recent times there has been active debate on the future, finances and scope of this health insurance. Medicare coverage primarily consists of two parts: Part A (the hospital insurance) and Part B (the medical insurance). Part A covers inpatient care at a hospital, hospice, nursing home or home health care. Part B mainly covers health care by doctors, outpatient care or some other medicines to prevent diseases. Medicare coverage offers options in that persons may choose part A, part B or both parts. It is useful to note that other plans: part C and D are now being offered to cover other services such a purchase or prescription drugs. Plans such as HMOs are chiefly for group health insurance plans which are purchased by groups such as companies, while PPOs are plans where health care providers such as clinics and hospitals sign up with the PPO to provide care for persons who are insured with the organization. Persons with Medicare coverage pay less on doctor visits from their pockets albeit, the actual amount paid to the doctor is determined by factors such as whether it is a participating physician, a non-participating physician who accepts assignments on a case-by-case basis or a non-participating doctor who does not accept assignments.. The board of trustees of the Federal Hospital Insurance (HI) and Supplementary Medical Insurance (SMI) trust funds in their report to congress in 2006 state that there was deterioration in Medicare’s financial health since the previous year. This report stated that the Hospital expenditure would exceed non-interest revenue in 2006 and that the trust fund faced serious financial conditions to the extent that there would not be enough resources to provide coverage in future years. In addition the report showed that the federal government would have to proffer addition financial aid which would negatively impact the Gross Domestic Product (GDP). It was noted that Hospital Insurance (HI) fund would be depleted in 2019, two years earlier than expected. The projection showed that there would be a need for a serious injection of capital or the future of Medicare would be dire. In its annual report in 2008, the board of trustees of the Federal Hospital Insurance (HI) and Supplementary Medical Insurance (SMI) trust funds, reported that there were still serious problems relating to the financial health of Medicare. The report paints a gloomy picture where the long run costs of running the program would exceed inflows and this process would be unsustainable. A vastly burgeoning number of aging baby boomers would put a serious strain on financial resources of Medicare and fiscal deficits are projected in future years. During the 2008 presidential election, there were debates on what to do with health care for the nation and the new government is actively looking at Medicare with the view to doing a complete overhaul including providing increased funding and coverage. The warnings about the potential demise of Medicare and the deleterious impact on America’s aging population has been sounded again by the trustees of (HI) and the new government seems to be awakening to the exigencies that now face the nation. The Medicare report in 2008 pointed to the need for an increase of over 122% in payroll taxes which would mean a move from 2. 9% to 6. 44% to balance inflows with outflows. It is now time for action on the part of the Government to prevent a dismal future for Medicare. References Centers for Medicare and Medicaid Services (2007). Acute Inpatient Prospective Payment System. Retrieved on November 15, 2007 from cms. hhs. gov/AcuteInpatientPPS/04_outlier. asp#TopOfPage U. S. Department of Health Human Services (2007), What are the Medicare premiums and coinsurance rates for 2008? Retrieved on November 15, 2007 from hhs. gov/faq/medicaremedicaid/650. html Medicare (2004). Questions. Retrieved on May 3, 2004 from medicare. gov/. Medicare (2004). Participating Physician Directory. Retrieved on May 3, 2004 from http://www3. medicare. gov/Physician/Search/PhysicianSearch. asp. Social Security Administration (1935, August 14). History. Retrieved March, 06, 2009 from: ssa. gov/history/hfaq. html American Academy of acturies (2008). Medicare’s Financial Condition: Beyond actuarial balance. Retrieved March 6, 2009 form: actuary. org/pdf/medicare/trustees_08. pdf