Medicare Future

Decent Essays

The Future of Medicare (Part A) Suitable health care would not be possible for the elderly population in America without the assistance of Medicare Part A. Medicare did not come about easily. Currently Medicare spending is more than what is being collected, questioning future solvency. There are many challenges with sustaining Medicare into the future. Medicare’s past struggles, present outcomes, and future challenges confirm that a national health plan is ever evolving to meet the needs of the current population and spending inflation.
The inception of Medicare started in 1915 with the first introduction of a health insurance bill to state government (Oberlander, 2015). The bill faced opposition from the initial conception. …show more content…

An analysis of tax increases may provide some options. Employees pay into the trust at a 1.45 percent payroll tax, employers contribute to the trust at a rate of 1.45 percent payroll tax. This has been the tax rate since 1987; the rate has not evolved with the economy (Moon, 2015). Increasing payroll tax by one percentage point would add $346 billion dollars to the trust by 2019. Another option, implementing a ‘sin tax’ on cigarettes and alcoholic beverages would contribute an additional $49 billion dollars. Other options for increased support to the Medicare trust fund, is to increase beneficiary …show more content…

On October 1, 2013 CMS has implemented a two midnight rule. If a patient is not in the hospital over two midnights the claim will not be eligible for payment under Medicare Part A (Pahuja, 2014). The physician must document and prove necessity for a two night stay. The American Hospital Association and three hospitals have sued Medicare based on ethical standards of RAC. The claim is that RAC auditors are paid based on the funds recovered from hospital audits. The push to pay auditors a flat fee, eliminating the unsubstantiated over riding of a physician decision in order to increase the amount of dollars

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