Question

What were the legislative attempts in the past 20 years to control the increasing cost of the Medicare program? Identify the name of the legislation and discuss its provisions aimed at controlling costs.

Answer 1

MEDICARE PROGRAM: Medicare is a federal health insurance program established in 1965 for a) people who are 65 or older b) people under age 65 with certain disabilities and c) people of all ages with End-Stage Renal Failure. The rising cost of Medicare is placing an increasing burden on current and future taxpayers as well as on the retirement plan. In the past, physicians and hospitals are paid a fixed amount of cost for each and every procedures that they perform and doesnot ensure quality of care to the patients which results in unnecessary cost as well as highest spending in the Medicare program.

REASONS FOR RISING HEALTHCARE COSTS:The main reasons for rise in healthcare system is a) reward medical practitioners for doing more than effective care b) drugs, technologies and procedures used were highly expensive c) partner ships among medical providers d) fear of malpractice lawsuits treatment.

CHANGES IN THE PAST 20 YEARS:Several different factors in the healthcare system have been identified in the past 20 years with the continuing increase in costs.They are a) the rise in wages and price levels in the healthcare industry b) increases in the number of certain customary services such as lab tests, c) the development of new and costly medical technologies d) changes in the organization of care and e) the growth of institutions of long-term care.

THE LEGISLATION AND ITS PROVISIONS:The Patient Protection and Affordable Care Act ( PPACA) of 2010 is responsible for the major changes occured in the Medicare program. In view to this, several provisions of the law were implemented to reduce the cost of Medicare. These provisions further in action reduced the growth rate of payments to hospital and skilled nursing facilities under Parts A of Medicare. It is carried out through various methods namely a) arbitary percentage cuts and b) penalities for readmissions. The Part A hospital insurance of Medicare program covers a) inpatient hospital care b) skilled nursing facility c) lab tests d) surgery and e) home health care. Moreover, the annual increase in payments to physicians and to hospitals is also decreased to serve the low-income patients by the legislation of PPACA. On top of these, the PPACA designed a legislative board called IPAB ( Independent Payment Advisory Board) barred from rationing care, raising avenue, changing benefits, increasing cost sharing to hospitals and creates an controversial issues in health reform.