Medicare Funding Crisis Essay

As the newly appointed chief of staff I impart been tasked with responding to a proposal for reducing Medic ar expenditures by enrolling participants in HMO. I beneathstand that we have some key questions mustiness be communicate and that we must justify our position on either economic ability or equity grounds. Outlined below are some of the questions that must be answered in order address this issue properly.Is Medicare in a state of crisis?Are you aware of the various policies that are be enacted from from to each one one state to state regarding the qualification of Medicare? Medicare is funded by the federal presidency and each state is responsible for operating the Medicare program as well as the local Medicaid programs. However, premiums have increased for Medicare and also, the coverage has changed in the past few years requiring people to purchase additional supplemental Medicare policies this is difficult for elderly that have fixed incomes. If the elderly are un able to purchase Medicare, they forget go uninsured. The Medicare system is double-funded. It is funded by the taxpayer (federal dollar) as well as the premiums being collected. But, in being double-funded, the coverage is still not as spunky as most secret damages companies making them appear with little tint.Are radical measures necessary to relate the program?This is a genuinely interesting question and you bequeath have to take a much subjective approach to answering it. I dont conceptualize on that point are radical measures that must be taken to preserve the program because it is funded through two divisions the federal government (taxpayer) and the premiums being collected. However, the price of providing the medical serve is much higher than the be being collected. whitethornhap a more responsible approach would be to evaluate the cost of the medical services being provided and standardize a cost plank among all amends companies including Medicare. For exam ple, a client may be seen by a physician for a regular check-up and that provider is only allowed to blast Medicare $65.If a client came to that same physician with a private insurance policy, that physician is allowed to charge the private insurance $120. What happens then is that the service under the Medicare payment is not provided in the most quality manner (although, physicians will argue this) because they are getting paid much less by Medicare rates. The physician may spend more time, energy, and commitment to a private paying client because they are getting almost twice the heart of money from the private insurance. It is a matter of motivational service-delivery. The radical measures that accept to take place are increasing Medicare rates of reimbursement or mandating humiliate rates of private insurance to neutralize the risk of receiving poor quality services.How is Medicare funded now?The Centers for Medicare & Medicaid Services (CMS), a branch of the Department of Health and tender-hearted Services (HHS), is the federal agency that runs the Medicare Program and monitors Medicaid programs offered by each state. (In 2011, Medicare cover 48.7 million people. Total expenditures in 2011 were $549.1 billion. This money comes from the Medicare Trust Funds. (Medicare.Gov (2010). About OTPN. Retrieved from http//www.medicare.gov/about-us/how-medicare-is-funded/medicare-funding.html) Medicare is funded by the federal government (the taxpayers federal taxes out of their paychecks). People may believe that social security pays for Medicare, but it doesnt. If less people are working, less money is going into the federal pool of money to fail to Medicare. The nation is at an all-time high for reported unemployment that means that there is millions of dollars not going into the fund account for Medicare.However, just as many an(prenominal) people are seeking medical coverage from Medicare an imbalance occurs. why do the elderly feel that Medicare is an insurance program, not a offbeat program? Is this perception accurate? Some elderly, in my opinion, believe that Medicare is an insurance program that they are entitled to. During the Great Society movement in the 40s-60s, various governmental programs were designed to provide citizens entitlements to human services and welfare needs. The Medicare and Medicaid coverage was designed to provide those that do not have any means to pay for health care a track in which they could maintain their health needs a right that the government and society has deemed every person should be entitled to their health. So, depending on the culture, upbringing, and personal philosophy.