Medicare makeover: Five responsible reforms to make Medicare healthy
December 17, 2012
| Medicare Makeover | |||
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| Five responsible reforms to make Medicare healthy |
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Unless reforms are adopted, Medicare spending will account for more than one quarter of the growth in federal spending over the next 25 years, outpacing domestic economic growth and risking the linchpin of security and stability in the health sector. Here are five of the biggest challenges facing Medicare and suggested reforms to convert the benefit into an efficient, well-functioning and sustainable program for the long-term. |
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1. Update Medicare's structure so patients understand the cost of care [MORE]
The problem: Unlike private insurers, Medicare requires beneficiaries to enroll in a separate insurance program for each type of medical care — hospitals (Part A), doctor visits (Part B) and prescription drug coverage (Part D). [MORE] Each part has its own deductible and set of coinsurance, copayments, and limits on benefits. The complex structure confuses recipients and makes them unaware of the cost of their medical care.
The solution: [MORE] |
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2. Facilitate coordination of health care services in traditional Medicare [MORE]
The problem: Traditional fee-for-service Medicare fails to promote coordination across health-care providers. As a result, beneficiaries often receive duplicative, inappropriate or even contradictory medical care that drives up costs and could harm their health.
The solution: [MORE] |
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3. Reform Medicare payment policies [MORE]
The problem: As a fee-for-service program, Medicare provides strong financial incentives for physicians to order more tests and recommend costlier services. As a result, Medicare spending grows at a faster pace than the economy. [MORE]
The solution: [MORE] |
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4. Allow private insurers to compete effectively within the Medicare system [MORE]
The problem: Medicare Advantage plans give recipients a choice of coverage provided by private insurers, rather than the government, but the bidding process for the insurers to participate is not competitive and raises program costs unnecessarily.
The solution: |
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5. Make Medicare more equitable by limiting the subsidy [MORE]
The problem: Medicare takes in far less money from payroll taxes and premiums than it pays out in benefits. The average individual who turns 65 in 2030 will have paid $87,000 in payroll taxes to Medicare, but is estimated to receive $251,000 worth of services. That's a $164,000 difference that is steadily adding to our nation's debt.
The solution: |
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