Medicare Reform

Medicare Reform

The laws of health reform (Affordable Health Care for America Act, HR 3962) were passed by three committees of the House of Representatives. Medicare improves the living standards of the people substantially by improving health coverage and managing their finances. The opponents of health reform have launched a campaign of disinformation to scare senior people and disabled who rely on Medicare for their health care. This is the reality: Health reform improves drug coverage. Medicare HR 3962 will eliminate the coverage gap of prescription drugs, removing all costs gradually over the next fourteen years. This will help millions of seniors and disabled who choose not to take medicine or pills due to financial strain and that leaves out a coverage gap during which they have to pay full price for the drugs. The bill provides immediate assistance by requiring drug manufacturers to provide a fifty percent discount during the coverage gap and allowing Medicare to negotiate prices lower for drugs. Health reform strengthens the economic outlook. Medicare HR 3962 reduces the growth rate of Medicare spending and holding the "Hospital Insurance Trust Fund" (or investment fund insurance hospital), which estimates that in 2017, it will not have the funds to pay claims. The bill strengthens Medicare's finances by reducing the annual payment increases to hospitals, nursing homes and home health agencies, and lowering subsidies to private plans Medicare health expenditure levels of Original Medicare. These reforms make payment based on the recommendations of the Advisory Committee Payments Medicare (Medicare Payment Advisory Commission), which is fair. No cuts in Medicare benefits in HR 3962 (Emanuel, 2007).

Before the presidential election, many people were anxious about possible changes that may occur in the program of federal Medicare health services. The reality is that Medicare's problems go beyond the economy, and are presented rather as a great historical demonstration of American idiosyncrasy.

Remember that Medicare was initiated by the administration of President Lyndon Johnson in 1965. It came into law due to the fact that there was a great majority of people over the age of 65 who were uninsured and had low or no coverage. This great historical event occurred after the Congress had submitted its first proposal for a mandatory health insurance program, which had been devised by President Harry Truman before the end of his term in 1953.

At that time, Truman's idea was quite similar to that presented today by the Democratic Party. It is one of "universal coverage" including the same criticism that has the right about a possible "socialist health plan." Anyway, as many people will realize, discord starts from the beginning.

Many people think that the reason why Medicare is out of control is mismanaging itself. However, a recent study was conducted by Health Affairs, which indicated that in 2000, private insurance companies spent $ 391 billion in medical costs for its members, compared to Medicare, which only cost $ 217 Billion, making it more efficient . Even, the same study concludes that Medicare members are more satisfied with the services being provided to ...