Marketing Management 500 Table of Content * IntroductionPage 1 * Medicare BasicsPage 2 * Administration and Funding of MedicarePage 3 * Medicare Gap leads to elderly skipping drugsPage 4 * Medicare: Bad News For BoomersPage 5 * Conclusion and RecommendationPage 6 * ReferencePage 7 Introduction Medicare is a federal insurance which provides persons over the age of 65 with coverage for many health conditions and treatment with no regard to their income level; whereas, Medicaid is both a federal and state program, which provides health assistance to people of low income groups with little regard for their age.
Medicare is a successful program; it comes with gaps especially in the areas of prescription drugs and long-term, non-professional nursing care. The elderly spend an estimated 22% of their income, on average, for health care services and premiums. Medicare is one of the nation’s primary healths. It provides coverage to nearly 39 million people. Before Medicare was enacted in 1965 just 56 percent of seniors had hospital insurance. Medicare By Social Security Administration In the article the author states Medicare was instituted along with Medicaid in 1965 by a Social Security Act.
The coverage and eligibility criteria vary from state to state. This program was intended to help with the cost of health care. Medicare had four parts Hospital Insurance which pays for impatient care in a hospital. Medical Insurance that pays for the doctor services and medical supplies that are not covered by hospital insurance. Medicare advantage is for people who have hospital insurance and medical insurance have the options to receive all your health care services through provider organization that’s coverage under Medicare advantage, and prescription drug coverage help pays for medications doctor prescribe for treatment.
Medicare is an essential means of paying for health care for many Americans. Administration and Funding of Medicare By Ed Grabianowski This article gives the funding breakdown of medicare spending. Medicare spending is growing more quickly than tax revenues and poses a far greater long-term financial problem. Medicare is supported by payroll Federal Insurance Contributions Act. The rate for that tax is 2. 9 percent the money that is collected from taxes for medicare and deposited into a trust fund used to pay doctors, hospital and private insurance comes when patients with Medicare uses their services.
Per this article Medicare cost about $277 billion per year and about 13 percent of the total federal budget. With unemployment rate rising and people losing their jobs can cause a lot of problem for medicare in the future because the revenue will drop because of people not working. Medicare Gap Leads to Elderly Skipping Drugs By MSNBC. COM Medicare patients with chronic illness stop using their medications when they were faced with picking up the full cost of their prescriptions. There are about 3. 4 million older and disabled people who have suffered from not being able to afford medications.
This article states that’s a person would have to pay $3,850 out of pocket before the insurance company would pick back up coverage. There has been a report that 10 percent of diabetes patient, 16 percent of high blood pressure patients, and 18 percent of osteoporosis patients stopped buying medicine. Once a patient hits it’s limited for the medicine coverage the patient then have to switch and use a generic medication. Since many patients are not able to afford medication if something doesn’t change we will see the percentage illnesses and patients kipping their medication rise over the years. As the people ages, expenses on prescription drugs has been increasing faster than other parts of our health care cost. Prescription drug expenses rises to double-digit rates each year, and it’s still rising. Medicare: Bad News for Boomers By Seattle Post Intelligencer Editorial Board Will there be Medicare for the younger generation is the question. If something doesn’t happen now there will be no Medicare for the young Generation when they get older.
The baby boom generations are facing bad news for corporate pension plans, Social Security and Medicare. People just don’t see where the funding will come from to be available for the future generation unless there is a tax increase. Research has shown that Medicare already spends more than it collects form payroll taxes. The article also states that the numbers have doubled over the years from $148 billion in 1983 to $ 283 billion in 2003. Congress is expecting that Medicare and other assists will grow about 7 percent of the economy today to around 14. 5 by 2040.