Essay On Medicare

MEDICARE: Problems and Solutions

Status of Medicare:

Medicare is source of health insurance for nearly 54 million in 2014, which covers people aged greater than 65 years and younger individuals living with permanent disabilities.1

In 2013, average per capita Medicare spending is about $12,000(Boards of Trustees, 2012). People starts paying throughout their working lives so that they and their spouses will get benefit after they turn 65. But, they use some amount of medical care in any given year while majority is concentrated among the beneficiaries with significant needs and medical expenses. Between 2010 and 2030, the number of people on Medicare would increase from 46 million to 78 million while the Medicare Part A Hospital Insurance Fund will have

According to MedPAC’s 2013 report, beneficiaries would collectively save about $800 million annually. And it also identifies that if outpatient hospital payment rates are lowered and made same as the rate in ambulatory surgical centers for the services that are commonly performed in ambulatory surgical centers then Medicare can save about $ 600 million annually.3

It should come up with new plan having comprehensive benefit package, as an alternative to Medicare Advantage and traditional Medicare. Additionally, it should try to remove the “Fee for Service” as it has spends $362 billion for “Fee for Service” in2014 and should develop patient’s care oriented payment system which would eventually reduce its spending on health care.4

Even the Physicians and Specialist doctors should try to avoid the unnecessary tests and unnecessary readmission in hospital, which would reduce the Medicare spending on Health care. And also, patient should avoid fraudulent home- health