MEDICARE FUNDING AND REIMBURSEMENT

Medicare Funding and Reimbursement



Medicare Funding and Reimbursement

Medicare is the system of health insurance administered by the Government of the United States of America that works for the benefit of people over 65 or meets certain criteria. The name comes from a contraction of "medical" ("Medical") and "care" ("Support", "care"). The first law that set up the Medicare system passed 30 July 1965 during the presidency of Lyndon Johnson as amendments to the legislation of the Social Security, as part of its draft “war against poverty” (Coulam 1991, Pp. 33-45). During the passage of the law, President Johnson made to former President Harry S. Truman's first beneficiary of the program, issue the first Medicare card. The ever increasing cost of medical instruments has created further difficulties for the Medicare to operate in a financially feasible manner.

Funding and Cost

Medicare partially financed by taxes imposed by the law of contribution to the federal system of employment assistance and health in 1954. For employees, the tax is 2.9% of salary (half paid by the employee, the other by the employer). Until December 31, 1993, the law provided a maximum amount beyond which the salary could be imposed. But from 1 January 1994, this limit removed and 2.9% tax imposed on a personal net income. For fiscal year 2002, the Medicare cost of 256.8 billion dollars 230.9 billion financed by the government, the rest from premiums paid by policyholders (Coulam 1991, Pp. 33-45). In 2003, Medicare accounted for 13% of the U.S. federal budget. As determined by the Centers for Medicare and Medicaid Services (CMS), 33% of every dollar spent on health care in the United States covered with Medicare and Medicaid. In the other direction, Medicare and Medicaid cover 61% of expenses in nursing, 47% of hospital expenditure and 27% of medical expenses.

Operations

As the man more concerned with health, this sector, which accounts for 17% of the U.S' economy has the potential to "bankrupt the nation" (Fisher 1992, p.1). As Michael Leavitt leaves after four years, his position as Secretary of Health and Human Services Offers this very careful calculation: if substantial reforms not carried out during the next two decades, health spending for the average American family, including the part of their income that goes to Medicare and Medicaid will rise from 23% to 41%. According to Leavitt, it expected that the current economic turmoil, increasing insecurity of citizens, complicating health care reform.

Medicare has four parts

Hospital insurance (Part A) that helps support care in a facility in-house hospital or skilled nursing (following a stay in hospital), some home health care, and some palliative care facility; Medical insurance (Part B) helps pay the

Physician services and other medical services and that products and medical devices not supported by hospital insurance.

Medicare Advantage (Part C) is available in many areas. Those benefiting from Part A and B of Medicare may choose to benefit from all their health care services by an organization supplying in Part ...