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Impact of Affordable Care Act on Medicare

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What is the Impact of ACA on Medicare? Tyeisha Molina Managed Care and Insurance Professor Conway October 21, 2012 Abstract There are many changes being made by the Affordable Care Act which will have an impact on Medicare. Affordable Care Act makes Medicare stronger as well as assists the elderly with taking responsibility of their health outcomes. The act will provide essential free assistances which include preventive services, yearly wellness appointments and a fifty percent price reduction towards prescription drugs for the individuals that are in the coverage gap called the donut hole. Medicare recipients can also work with their physicians to develop a personal prevention plan. Affordable Care …show more content…

The program was created due to a collaboration of multiple unconnected governmental obligations. The first obligation was that the Medicare prescription program was in need of a reasonably lower yearly deductible to make sure the majority of participants saw individual benefits for being enrolled in the plan. The reason for this was due to a failure of a 1988 regulation made to the Medicare drug program. As a result an enrollee would have to volunteer for any new legislated Medicare prescription program which meant that if the enrollee had to volunteer for the program it was important for the majority of the recipients to be given some form of substantial assistance for participating in the program. (Kaplan 2011) The second obligation pertained to the circulation of the yearly prescription costs that followed the simple design for health costs which was normally the main part of the program’s expenses which were caused by a small number of the programs enrollees. The costs from the small amount of enrollees have the ability to be an enormous amount. Therefore, in order for the Medicare prescription program to offer most support for the participants that required it more than the catastrophic coverage had to have a lower co-pay amount attached to it. The model’s ending fee level has a five percent co-insurance obligation without a limit of on coverage. (Kaplan 2011) The last obligation was due to the administration directed by President Bush which

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