Medicare And The Elderly Of The United States

1160 Words5 Pages
The quantity of Medicare eligible individuals continues to grow as the median age of the population of the United States rises. The old Medicare system has become outdated and strained because of the volume of individuals that are currently receiving benefits within the program. Since the enactment of the Affordable Care Act (ACA), Medicare has become the main source of delivering healthcare insurance for the elderly of the United States. In order to meet the current requirements of the ACA, Medicare must be reformed in order to provide the promised services for the individuals that are currently receiving benefits and for the future survival of the program. Medicare was established by the federal government to provide healthcare insurance initially for the elderly and included the disabled a few years after the program’s inception. As of 2013, there were 52.3 million beneficiaries of Medicare, with an average of $11,910 spent on each individual for healthcare, with a total annual budget of $582.9 billion (NCPSSM, 2015). Medicare is funded through two trust fund accounts that are held by the U.S. Treasury: the Hospital Insurance (HI) and Supplementary Medical Insurance (SMI) Trust Funds (Medicare.gov, 2015). These trust funds are financed by payroll deductions, Social Security benefit taxes, premiums paid by Medicare beneficiaries, interest from investments, and funds furnished by Congress (Medicare.gov, 2015). All of these resources subsidize the Medicare Trust Fund in
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