Medicare Will Be Bankrupt If Nothing Is Done To Reform The Program
Medicare as we know it is beginning to die a very slow death. Currently, the drain and cost of the system has Medicare to be completely bankrupt by the year 2024. This is very bad news for the vast number of seniors and disabled who rely on Medicare for health care benefits. Here are the biggest problems facing Medicare:
-Baby Boomers are retiring at the rate of 10,000/day creating more individual reliant on Medicare services.
-The Affordable Care Act is squeezing the life out of Medicare and will not allow it to stay afloat for the nations seniors.
Medicare Is Going Bankrupt To Fund Obamacare
The government is doing what it does best; it’s robbing from Peter to pay Paul. Meaning, the funding for Obamacare had to come from somewhere. It certainly didn’t materialize out of thin air. In actuality 716 billion dollars will be taken out of Medicare over the next decade to fund Obamacare. 400 billion will be taken from health care providers. With no additional reform to the programs operations, Medicare will not be able to continue to operate with its current funding.
How Will The Drain On Medicare Impact Hospitals?
Even today, Doctors get reimbursed less on Medicare patients than on patients carried by other private insurances. Many doctors limit the amount of Medicare patients they are willing to accept in order to stay afloat. With the increase of people reliant on Medicare/Medicaid or Obamacare, 15% of hospitals treating Medicare patients will go under. The smaller hospitals and organizations will not be able to swing the increased costs, and the accessibility to health care for many people will suffer.
Who Makes Decisions On Medicare Reform?
Unfortunately, the way it is currently set up an Independent Payment Advisory Board comprised of a panel of 15 individuals, with no congress oversight will be making the decisions on how to reform Medicare. The outcome of many cost control initiatives could cause many Health care providers to stop seeing Medicare patients entirely. So the quality of care for Medicare patients could go down significantly.
Chances are good that if you hope to retire one day, there will be a time that you will need Medicare in some form or another. If things continue unchanged Medicare may or not be there for you when you need it. Additionally, the economic turmoil the strain of Medicare will cause could have far reaching economic effects that will impact America as a whole, and individual investors alike. For more information on how to plan ahead financially due to the Medicare drain facing this country, speak to a Redhawk Advisor near you.