A Study of Medicare—Demographics, Funding and Possible Alternatives to Reduce Costs over the Long Term
What is Medicare? Medicare is a federal program that pays certain health care expenses for people aged 65 or older, and individuals who are deemed disabled by the Social Security Administration. Enrolled individuals must pay deductibles and co-payments, but much of their medical costs are covered by the program. Medicare is less comprehensive than some other health care programs, but it is an important source of post-retirement health care. Medicare was created under Title XVIII of the Social Security Act in 1965 to provide health insurance to people age 65 and older, regardless of income or medical history (CMS.gov, 2011). During forty years in operation, Medicare was updated and changed several times to meet the changing needs of the US citizens and the political agendas resulting in reform and making Medicare more responsive to the needs of the elderly. Today, Medicare covers: people age 65 or older, people under age 65 with certain disabilities, and people of all ages with End-Stage Renal Disease (ESRD). Medicare is not in a good position right now: rising costs are predicted to bankrupt the present system. The steady rise in costs due to technology and an aging population necessitate changes to Medicare. There are proposed alternatives to reduce costs of Medicare over the long run. The current health care system has to be more flexible, participant-controlled, and outcomes-oriented.
Different part of Medicare The Medicare program has two components: Hospital Insurance (HI) or Medicare Part A, helps pay for hospitalizations, home health, skilled nursing facilities, and hospice care for the aged and disabled. Supplementary Medical Insurance (SMI) consists of Medicare Part B and Part D. Part B helps pay for physicians, outpatient hospital care, home health, and other services for the aged and disabled who have voluntarily enrolled. Part D provides subsidized access to drug insurance coverage on a voluntary basis for all
Different part of Medicare The Medicare program has two components: Hospital Insurance (HI) or Medicare Part A, helps pay for hospitalizations, home health, skilled nursing facilities, and hospice care for the aged and disabled. Supplementary Medical Insurance (SMI) consists of Medicare Part B and Part D. Part B helps pay for physicians, outpatient hospital care, home health, and other services for the aged and disabled who have voluntarily enrolled. Part D provides subsidized access to drug insurance coverage on a voluntary basis for all