The Benefits Of The Baby Boomer Generation

1175 Words 5 Pages
The United States and countries around the world are facing a new challenge with the looming retirement of the Baby Boomer generation. As this generation approaches retirement, the United States will have to overcome many factors to align the financial cost of providing SSI benefits, Medicare and Medicaid. The grown in Medicare eligible individuals is projected to out- number to projected workforce of individuals between the ages of 16-65 by 33 %( Wiener & Tilly, 2002). In addition this will result in fewer individuals paying taxes to support state and federal programs aligned with the current system. Couple that will the change in life expectancy, increased demand in long term care facilities, management of chronic conditions, shortage …show more content…
Individuals born from 1946 to 1964 are leaving the workforce yet they represented a historic surge in the workforce, higher standard of living, increase in college enrollment and an increase in the economy due to child birth rates and home purchases (Nyce, 2007). This generation forever changed the landscape of the workforce as more women demand equal treatment, higher paying positions and better work/life balance. In addition, as they leave the workforce, the US will lose about 12% of its seasoned, skilled and highly trained employees and with these individuals retiring the US will be forced to provide extended health care services to meet the increased life expectancy as a result of advances in health care (Nyce, 2007). As the baby boomer generation retires, it will result in decline in the workforce. The labor force grew 1.6 percent from 1950 to 2000 but is projected to only reach .6 over the next 50 years, and continue to decline to .2 percent from 2015 to 2025 resulting in less individuals contributing to the tax base required to support the federal/state programs needed to provide care for the elderly (Clement, 2004). The decline in the workforce will spill over to healthcare. As more Americans seek long term health care facilities, skill care and acute hospital settings the current projections of the healthcare workforce doesn’t support the need for services. In 2010, there was a 10 percent decline in the …show more content…
The projected growth to provide services will jump from 6.8 percent of the GDP in 2000 to 13.2 percent of the GDP by 2050, yet the number of workers contributing to the system will decline (Wiener & Tilly, 2002). This will leave America with a deficit in financing the future cost of healthcare. There are few ways I would propose to change the model to ensure its future. One I would change the eligibility requirements to limit access to those who do not have additional health care coverage, require long-term insurance coverage and ensure correct claims payment. Currently, Medicare allows an individual to utilize Medicare at age 65, if they or their spouse, have meet the number of quarters of payroll taxes under the Federal Insurance Contributions Act (FICA). The individual’s additional health insurance is not taken into account, therefore, if they have any additional health coverage they should not be eligible for Medicare coverage. This would eliminate Medicare from paying as a secondary carrier. In addition, requiring individuals to purchase long term care insurance would help reduce the expense. Approximately 16% of all retirees will attempt to have Medicare cover their long-term coverage, while only 14.9% would be willing to sell their home to cover expenses (Salter, Harness & Chatterjee, 2011). Individuals

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