MEDICARE CRISIS

Solving the Medicare Crisis

Solving the Medicare Crisis

Introduction

Medicare is the U.S. federal health insurance program that was established by Congress in 1965, for the aged and disabled. It is a free medical care rights program for the qualified beneficiaries, not taking into account the needs of the program, unlike Medicaid, the U.S. federal health insurance program for low-income persons. Thus, the rich, the poor and middle class, things can get Medicare benefits if they meet the selection criteria.

Is Medicare in a state of crisis?

Medicare is currently not in a crisis situation, but a prudent strategy and definitive action required avoiding an imminent funding urgency and crisis in the coming times.

Are stringent measures necessary to preserve the program?

Radical measures are necessary not only to preserve the program, but to avoid any future problems related to the disbursement of cost-effective health care services to the aged and the disabled.

How is Medicare funded now?

Medicare is financed through taxation of income; any added funding will have to be drawn from slashes in other programs or a boost in the levy rate. There are two trust fund accounts held by the US. Treasury, that supports and looks after the funding of Medicare. These are

Hospital Insurance (HI) Trust Fund

Supplementary Medical Insurance (SMI) Trust Fund

Why do elderly people feel that Medicare is an insurance program and not a welfare program?

Medicare, for the elderly people, is an insurance program instead of a welfare program. They hold this viewpoint because they think they spend their lives paying for this system, and it is only their own contributions that they receive later in their old age. They think that Medicare is an entitlement that they should receive, and not a handout that the government extends to them graciously. Hence, they believe it was their right to obtain healthcare facilities free of cost, and not in the form of an insurance policy.

 Is this perception accurate?

This perception is not unjustified, as medical aid is the right of the aged population once they reach an old age. Their perception solidifies on the ground that it is only their own money that they receive while medical facilities, for them, should be made free of cost (Garg, Barzansky, 2005).

Should there be a Medicare program at all?

Whether there should be Medicare at all, is an arguable point. If the program lives, it will extend health care facilities ...