Question

Summarize the legislation that introduced Medicare and the funding source for the program. Discuss some of the changes that have occurred in the Medicare program since its inception. Describe the demographics of the population covered by Medicare and identify the number of people in the U.S. covered by Medicare. Assess how changes in Medicare will affect the citizens and legal residents in your state. Include specific demographic information on age, race, income, etc., for your state to justify your response.

Present your response in a 3- to 5-page Microsoft Word document formatted in APA style.

On a separate page, cite all sources using APA format.

Answer 1

History of medicare and its changes:

Medicare was enacted in 1965 to help assure that virtually all citizens age 65 or older would have health care coverage. The program was modeled on the standard employer-sponsored health plans of the day. Increased access to and insurance coverage of health care has resulted in significant benefits for the elderly including improvements in health and income status. For example, life expectancy at age 65 has increased several years and the poverty rate for the elderly has declined by about half. On July 1, 1966, Medicare, authorized by title XVIII of the Social Security Act, offered health insurance to almost all Americans age 65 or older.

The Social Security Amendments of 1972 authorized the only major eligibility expansion of Medicare. The act granted benefits to those people under 65 who receive Social Security disability cash payments for at least 24 months. The act also added people with end-stage renal disease who require maintenance dialysis or a kidney transplant.

Medicare Trust Funds are the main funding sources of these programmaes and the medicare was paid through funding accounts of two trusts mainly held by the treasury of U.S. For medicare care purpose only these funds can be utilised. The hospital insurance was paid by trust fund payroll taxes, which was paid by employers, employees, and self employed people. Federal employees began paying the Medicare payroll tax in 1983 and all newly hired state and local employees began doing so in 1986. Thus, most government employees and retirees are now eligible for part A under the same circumstances as other workers

But currently Medicare is facing serious financial challenges. Over the next 50 years the number of beneficiaries is expected to more than double while the ratio of workers, whose payroll taxes fund over half of the program, to beneficiaries is expected to decline from about 4 to 1 to a little over than 2 to 1. Moreover, recent estimates from the Congressional Budget Office and the Administration predict that the program will be bankrupt about the time the growth in beneficiaries accelerates as the baby boom generation starts to become eligible in 2010.

As per the census of 2009, population covered by Medicare is 44 Million. If we talk about demographics then we can say than more than half of the medicare enrolees are between the age of 65 to 74.however older age segment is growing. Over the age of 85 are 10% of the medicare population. One fourth are under 45 and one third are between 45 to 54. Female number are higher than males by 5 millions.

References:

Jencks SF, Huff ED, Cuerdon T. Change in the Quality of Care Delivered to Medicare Beneficiaries, 1998-1999 to 2000-2001. Journal of the American Medical Association. 2003 Jan 15;289(3):305–312.

Snyder C, Anderson G. Do Quality Improvement Organizations Improve the Quality of Hospital Care for Medicare Beneficiaries? Journal of the American Medical Association. 2005 Jun 15;293(23):2900–2907.