Here is a list of changes to Medicare that have been proposed by various interest groups. By November, the “supercommittee” working on deficit reduction will let us know how they think Medicare should be changed to reduce spending.
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Brand Drug Cost Overwhelms Medicare Part D Budget
Brand drug costs make up 75% of Medicare’s costs for Part D, even though most people take generics.
Medicare and the Budget
In fiscal year 2010, Medicare spending totaled $524 billion, accounting for 20 percent of national health expenditures, 15 percent of the federal budget, and 3.6 percent of the gross domestic product (GDP).
The Cost of Medicare
In 2008, Medicare spent $9,100, on average, for each Medicare beneficiary. Miami, Florida was the most expensive city for Medicare, with an average cost per Medicare beneficiary of $18,199 in 2008. Honolulu is one of the least expensive cities for Medicare.
Medicare Part D and Deficits
In 2010, Part D made up 13.4% of the Medicare budget, or $68 billion. Even with seniors paying premiums for their Part D plans that range from $15 to $90 per month, Medicare still paid out $68 billion in 2010 to subsidize their drug costs!
2011 Part D Enrollment: Winners and Losers
Medicare beneficiaries can change their Part D drug plan at the end of end of every year. Once they are in a plan, most are “locked in” for the next year. The numbers are in for 2011 enrollment in Part D drug plans, and the winners and losers are:
The Future of Medicare Advantage: Who’s Right?
Dr. Berwick said Medicare Advantage is still growing, even with changes required by the Affordable Care Act. Republicans says seniors are already losing benefits. Who is right?
Annual Physical Now Covered by Medicare
As part of the Affordable Care Act, Medicare now covers annual wellness visits and will provide payment for the creation of a personalized prevention plan. Many screening tests will be provided at no cost to the patient.
Hospice Cost for Medicare
Hospice agencies receive $142.91 per day in payment from Medicare. Payment is the same no matter the level of care that might be required by patients with different needs.
Medicare Beneficiaries Can Lodge Complaints Over Care
People on Medicare can make complaints against providers. A new Medicare rule will require doctors and other providers of care to tell patients how to lodge their complaints.
2.8 Million Baby Boomers Eligible For Medicare in 2011
In 2011, 2.8 million baby boomers will turn 65 and become eligible for Medicare.
Medicare Advantage: A Growing Business
Humana’s Medicare Advantage enrollment climbed 17 percent in the third quarter of 2010 to more than 1.7 million people. Humana is the second largest provider of Medicare Advantage plans behind UnitedHealth Group. United’s Medicare Advantage business grew 16% year-over-year.
The Future of Medicare?
Under Congressman Paul Ryan’s plan, current Medicare beneficiaries and those 55 and older would get Medicare as it exists today. For everyone else, eligibility would begin at 69 and-a-half, and there would be a “standard Medicare payment” for the purchase of private health coverage.
Medicare Advantage: No Cuts in Election Year
Medicare Advantage plans will not face big payment cuts until 2012 as a result of the health care reform bill, avoiding a political hot potato in the 2010 election year.
Medicare Independent Payment Advisory Board
In the long list of provisions in the health care reform law that will affect Medicare, it looks like the most important element is the Independent Payment Advisory Board. This appointed board will have the ability to set policy for Medicare.
Health Care Reform Law and Part D
All the delays in passing the health care reform bill will also delay positive changes to Part D coverage. Seniors were supposed to get relief this year, but it appears that people who fall into the doughnut hole in 2010 will only get a $250 rebate. Changes that were supposed to take effect in 2010 have been moved to 2011.
