The Cost Of Medicare On The Economy
The Cost of Medicare On The Economy Medicare is facing a problem of retiring baby boomers, rising life expectancy, and decreased fertility rates that will increases the proportion of the population over age of 65 who be eligible for Medicare benefits. The problem with Medicare is that they never made adjustments for people who live longer. Also, there are inadequate funds to meet the needs of the future enrollees.
Medicare is a national social insurance program. It is administered by the United States federal government and was signed into law on July 30, 1965 by President Lyndon Johnson (CMS, 2012). Currently Medicare covers 60 million Americans. The health
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The baby boomers are getting old and will soon impact the Medicare system in large numbers. Aging affects the normal functional ability of elderly; simple activities such as using hands to eat and walking to the bathroom might become difficult to perform. In addition to that, aging can lead to chronic diseases such as anemia, dementia (Alzheimer disease), kidney failure and heart diseases. All these complication needed to be diagnosed and treated. Treatments services are provided in hospitals, nursing homes and other health care giver facilities. All these services are covered by Medicare for the baby boomers who will reach 65 years of age in the near future. Unless new regulators concerning Medicare are passed there will not be enough money to deal with the large number of baby boomers who will become eligible for Medicare benefits. Before 1965, nearly half of the elderly had no health insurance and many others had inadequate coverage. Medicare was enacted to help assure that all citizens (baby boomers) 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. However, due to the improvements in healthcare, the life expectancy of elderly population