I suppose it saves even more if folks don’t buy anything and don’t get care but end up living in ERs, but different budget by shifting cost to hospital which won’t get reimbursed. :((
http://kff.org/medicare/issue-brief/the-facts-on-medicare-spending-and-financing/ says that 2015 Medicare spending per person was $12,744 ($5,019 part A + $5,522 part B + $2,203 part D).
@ucbalumnus can you imagine what a private health insurer will charge people in that age bracket for a policy? That 12744 is of course a straight average, you have to wonder what the median cost per patient was.
Does anyone know if these changes will impact those who already receive Medicare? Or is this something being phased in for those turning 65 next year or whenever?
All of this is discussion. No formal proposals have been made…nor will they be until after January.
$12,744 is just Medicare spending per person; it does not include any additional private spending by the patient for medical services or supplemental private Medigap policies.
Total medical care spending for age 65+ in 2012 was $18,988 per person, according to https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html . Presumably, it was higher in 2015, but even the 2012 level indicates that existing Medicare spending leaves a significant amount of medical care spending borne by the patients.
Obviously, cutting government spending on Medicare (regardless of format, whether in the current structure or a subsidized voucher system for private plans) would mean higher spending by the patients, unless the more difficult task of making medical care spending more efficient is successfully done.
Also, if changes to Medicare result in elimination of guaranteed issue, the pre-existing condition limitations will become a huge issue.
Politically, it is likely that any perceived threat to Medicare (or Social Security) benefits will turn significant numbers of age 65+ voters into one-issue voters.
I think thumper says it: we don’t yet know and have to ask ourselves how worked up we want to get, until that time comes.
True, but I think it behooves all of us not to treat a proposal, when one comes, like a done deal.
Agree not to get worked up yet. But I do want to have some basic understanding now so I know what questions to ask if/when proposed legislation comes up. This is one issue I’ll likely be giving “feedback” on to my representatives and I would encourage others to as well
Yes, I know nothing concrete yet - I am just wondering if those who have been following the proposals know what is being discussed as far as how this would be phased in. Any discussion of grandfathering in those already on traditional Medicare? I just cannot imagine asking elderly who have been on Medicare for years to comprehend these changes and shop for a plan with their coupon.
I went to an ALF today (assisted living facility). The 3 nurses were having heated discussion about this. They spoke of Humana not being accepted at local hospitals. How giving the cognitively impaired coupons to manage their medical bills, when they cannot even write a check. Later, a private patient spoke of needing a new insurance plan, and learning that BC was probably one of the few remaining in FL, able to set their own prices. They could not believe that FL residents are just learning all this news now.
Last time changes in Medicare were bandied about, there was general talk about grandfathering people 55+. Have heard absolutely no talk along these lines yet - I think it’s just too early. But the financial implications of this concerns me greatly. We are looking at retirement in the next few years and frankly are working now for medical insurance. We will also be covered by Medicare when we hit 65. Trying to figure out how much $ we need to retire just got more difficult because of this. It’s always been a challenge to estimate health care costs in retirement but now it’s quite likely we’ll need to allow even more for this - but how much?
I worry very much about making Medicare more complex for cognitively impaired elders. My mom is 91, and, like most 91-year-olds, she has a variety of medical ailments. Also, like many 91-year-olds, she has some dementia. She would not be able to manage choosing and enrolling in an insurance plan every year. Mom has her kids to look out for her, but what about a 91-year-old with dementia and no family? How is that person supposed to navigate picking an insurer?
The last thing frail, medically complex elders need is more complexity and confusion in their already confusing medical lives.
@“Cardinal Fang” - not to mention people at that age are likely to be very close to outliving their financial resources. Adding an increase in health care costs at that late date could be beyond their ability to fund the change.
Think “fixed income” also. Incomes won’t rise…but the potential out of pocket costs are likely to increase.
I think we lean to AARP as this develops, watch their analyses, join their protest and other voices.
Honestly, having just enrolled, it was hard enough for me to wade through all the info, the endless mailings, myriad options, and I’m good at it. Yup, Fang, I kept thinking about someone less capable faced with this.
Recently decided it was time to join AARP. With luck, we will all be old at some point. Joining voices together for strength seems like a really good idea.
As folks get older, wading through more medical insurance paperwork just seems insurmountable. Add to that fixed income and increasing cost shifting, sounds like seniors and hospitals will be taking a huge hit if things proceed in this manner.
The Speaker of the House and the proposed Secretary of HHS are for eliminating Medicare. Nevertheless, my fervent hope is very cynical: that the president elect will let them go down the road until the voters figure out what’s happening - then he will ride in on the political white horse to save the day. Too cynical?
Without getting too much into the politics of it, these kind of proposals have been floated before, both with SS and Medicare, “privatizing” them, and in general it has gone over like a lead balloon. AARP and senior citizens in general have a lot of clout and I suspect quite honestly that like privatizing SS that Bush put forward, it isn’t easily going to be implemented. Among other things, if you look at the election and who voted for Trump, a lot of them are people who would be affected by this a lot, so it raises the question will Trump himself back this? (and I don’t know, just putting that up as a point),like many things we won’t know until he takes office and the new congress convenes. This idea of vouchers, and privatizing, is not new.