Real Solutions for Medicare Solvency and Reducing the Deficit
- Bring Down the Costs of Prescription Drugs. Medicare should benefit from the same discounts for prescription drugs as Medicaid. ...
- Stop Paying Private Medicare Plans Anything More Than Traditional Medicare. ...
- Lower, Don’t Raise, the Age of Medicare Eligibility. Some proposals to reduce the national deficit would increase the age of eligibility for Medicare from 65 to 67, or even ...
- Let the Affordable Care Act Do Its Job. The Affordable Care Act includes many measures to control costs as well as models for reform that will increase the solvency ...
Full Answer
How to get help when you have problems with Medicare?
What To Do If There Is A Medicare Billing Error, Or You Suspect One Occurred
- It could be an accident. Accidents happen—even with billion-dollar government programs. ...
- Make sure you’re not being scammed. On the other hand, an “accident” could disguise itself as fraud. ...
- Check with Social Security. ...
- Fill out the right form. ...
- Know who is billing you. ...
How to start my Medicare?
Try these tips in your 30s:
- Reassess your budget and if there’s spending that doesn’t align with your values, cut out those low-priority expenses
- Look for ways to boost your income. Can you ask for a raise? ...
- Diversify your retirement accounts; if you have access to a 401 (k) at work, take advantage of it, especially if there’s a match. ...
How do I get off of Medicare?
You need to provide copies of 1 of the following:
- birth certificate
- current driver’s licence
- current passport.
How to fix social security and Medicare?
- Massive and economically debilitating tax increases. (See Chart 2.)
- Elimination of other federal programs. (See Chart 3.)
- Unprecedented budget deficits. (See Chart 4.)
How can we solve Medicare problems?
Call 1-800-MEDICARE (1-800-633-4227) You can call 1-800-MEDICARE and speak with a representative to ask questions about Medicare or get help resolving problems with Medicare. We made a test call to this number and were greeted by a polite Medicare representative after being on hold for about 90 seconds.
How can Medicare solvency be improved?
To extend the solvency of the trust fund, we have two choices: spend less or increase revenues. We believe there is substantial unnecessary spending in Medicare and outline ideas that increase efficiency and payment accuracy without reducing eligibility or benefits.
How can Medicare be sustainable?
Increase co-payments from retirees – putting more of the costs of the program on retirees is another way to make Medicare more sustainable. This has already occurred by increasing the Medicare Part B premiums and increasing deductibles.
How do you maintain Medicare solvent?
Legislators and the president will need to either: increase revenues flowing into the trust fund by at least $700 billion to extend solvency to 2036 (experts typically focus on 10-year time horizons); cut spending on Medicare beneficiaries or increase their monthly premiums or figure out a combination of these two ...
How can I increase my Medicare funding?
Strengthening Medicare FinancingDedicating the Medicare tax on unearned income to the HI trust fund. ... Shifting spending out of the HI trust fund. ... Filling the gaps between the Medicare taxes on unearned income and earnings. ... Reducing provider payments. ... Reducing overpayments to Medicare Advantage plans.More items...•
Is Medicare underfunded?
Politicians promised you benefits, but never funded them.
What should the US do to reform Medicare?
Congress should reform Medicare graduate medical education payments by converting the payments into direct grants to institutions sponsoring residency training programs; allowing ambulatory care settings such as physician groups to receive funding for sponsoring residencies; and cutting the total amount of spending by ...
Is Medicare financially stable?
Currently, Medicare's actuaries estimate that there will be sufficient funds available to pay for hospital insurance benefits in full until 2028 (Figure 1). At that point, Medicare will be able to cover 87% of costs covered under Part A through payroll tax revenues—but the Medicare program will not cease to operate.
What are two challenges to the long term sustainability of the Medicare program?
A shrinking taxpayer base, swelling beneficiary numbers and growing healthcare costs all threaten Medicare's long-term viability, according to the HHS, and the agency warned the program would need to increase its revenue or drastically reduce benefits to balance its budget.
What would happen if Medicare ended?
Payroll taxes would fall 10 percent, wages would go up 11 percent and output per capita would jump 14.5 percent. Capital per capita would soar nearly 38 percent as consumers accumulated more assets, an almost ninefold increase compared to eliminating Medicare alone.
What is Medicare insolvency?
Medicare Financing Issues Much of the concern about Medicare's financial status tends to focus on the HI trust fund date of insolvency, when Medicare would no longer have the authority to pay for Part A health care services in full.
How Long Will Medicare be solvent?
2026The Medicare Hospital Insurance Trust Fund will have sufficient funds to pay full benefits until 2026, according to the latest annual report released Aug. 31 by the Medicare Board of Trustees. That's unchanged from last year's report.
The Problems
On the macro level, the federal government as of the end of the fiscal year this September will hold $23 trillion in debt—roughly equal to the size of our current economy.
Solution 1: Medicare Opt-Out
I wrote about this issue four years ago, during the Trump administration’s opening weeks. In 1993, an administrative ruling by the Clinton administration—one that did not even go through notice-and-comment rulemaking—forced all individuals to enroll in Medicare Part A as a condition of applying for Social Security.
Solution 2: (More) Means Testing
The principle of means testing—charging affluent individuals higher Medicare premiums—began as part of the Medicare prescription drug law enacted in 2003. In one of its few positive changes to the health-care system, Obamacare expanded means testing some years later.
Solution 3: Structural and Medigap Reforms
A third bipartisan solution would rationalize the Medicare benefit structure, and specifically rein in the purchase of Medigap supplemental insurance. Because the traditional Medicare benefits provided by law do not include a cap on out-of-pocket costs, roughly nine in 10 seniors have some type of “insurance” to provide such a catastrophic cap.
A Good Start on Bigger Reforms
These three changes alone would not solve the Medicare program’s financial woes—far from it. But they would modernize a Medicare program approaching six decades old, while making it more sustainable and solvent for future generations.
Medicare Part A
Medicare Part A covers hospital expenses. If you or your spouse worked for at least 10 years (40 quarters), you will most likely be eligible for premium-free Part A when you turn 65 years old.
Medicare Part B
Medicare Part B covers outpatient medical costs and comes with a monthly premium for all Medicare beneficiaries. The standard premium is $148.50 per month in 2021, but this rate could be higher based on your income.
You have health insurance you want to keep
If you currently have a health insurance plan that you love – either through a job, your spouse, a union, or other source – you may wish to continue your current coverage.
You want to keep contributing to an HSA
You may also want to defer signing up for original Medicare if you currently have a health savings account (HSA). Once you’re enrolled in original Medicare, you’re no longer able to contribute funds to an HSA.
You want to use your current Veterans Affairs benefits
If you’re a military veteran and have benefits through the Department of Veterans Affairs, you’re covered only for services provided at VA facilities. VA benefits typically won’t cover services you get at outside facilities, unless specifically authorized by the VA.
You currently have TRICARE or CHAMPVA coverage
Active duty and retired military members and their families are typically eligible for TRICARE health insurance through the Department of Defense. Those who aren’t eligible, such as surviving spouses and children, may be eligible for CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs) coverage.
Special enrollment periods
To avoid penalties, you must enroll within 8 months of when your current coverage ends. This is known as a special enrollment period.
The Myth of Economic Growth as a Solution
Politicians regularly suggest that the deficit problem can be resolved as the economy improves because revenues through taxes naturally increase as incomes rise through stronger growth. Such thinking encourages postponing actions that are politically unpopular, such as raising taxes or cutting popular programs.
Potential Options to Reduce Deficits and the Federal Debt
For years, Americans have mortgaged their future by failing to make hard choices about taxes and spending. Continuing to delay intensifies the country’s debt problems and its impact on day-to-day life.
Final Word
Solving the nation’s debt problems won’t be easy. Many are sure to call the CBO’s proposed recommendations “draconian” and may refuse to consider their imposition. At the same time, our political leaders have been reluctant to take the necessary steps to stop the cycle of repeated deficits, preferring to pass the buck to future generations.