Current Financial Health On The Financial Sustainability Of Medicare

928 Words Mar 9th, 2015 4 Pages
Current Financial Health on the financial sustainability of Medicare Medicare has provided valuable health care coverage for over the past 40 years. The Medicare program has continuously been a major focus on deficit reduction laws passed by Congress. This is because of Medicare’s rapid growth, as a portion of the federal budget and in terms of collective dollars. Many characteristics of the program have changed to meet society’s demands, as needed. Reductions in Medicare’s spending have been achieved through reductions and freezes in payments to providers, changes in cost sharing requirements, and by making changes to beneficiary premiums. As of late, the Affordable Care Act made several changes to the Medicare program that enhance certain Medicare benefits, as well as, modify provider reimbursements, and provide incentives to improve the quality and efficiency of care. There are 4 parts of Medicare, each part is funded differently. Part A, the Hospital Insurance (HI) Trust fund is paid by taxpayers. Employees pay 1.45% of their earning into the Federal Insurance Contributions Act (FICA), which goes into the trust fund. Employers pay an additional 1.45% into FICA. Those who are self-employed pay 2.9% towards FICA. Individuals making $200,000 or more and couples making 250,000 or more pay a higher percentage of 2.35% into the Health Insurance Trust Fund. The Supplementary Medical Insurance (SMI) Trust fund, Part B, is financed through premiums paid by recipients…

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