Medicare

In: Business and Management

Submitted By dodiboogie
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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.
Organization Information
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 insurance is available to individuals 65 years and older. It is an insurance program for which these enrollees have money deducted from their pay while they are still working. The health care insurance covers hospitals, physician’s services, nursing home care or home and community-based services Also, the participant pays part of the services called “deductibles”. Medicare provides health insurance benefits to 38.7 million people age 65 years and older. (Center for Medicare & Medicaid services, 2011).

Gist of The Problem The problem with Medicare is that the regulations have not changed even though there are more people enrolled in the program. Medicare will be unable to provide the same services unless the premiums are increased.

Description: The Problem
The baby boomer generation, who were born between 1946 and 1964, makes up a substantial portion of the North American population. They represent 20% of the American public that have a significant impact on the economy. After the end of World War II, birth rates across the United States spiked. The explosion of new infants became known as the baby boomers. During the boom,…...

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