Medicare has been in the headlines recently with elections just around the corner! This article is not about Republicans versus Democrats, but more about the fact that Medicare is going to change regardless of who or what party takes office.
The reason is simply that Medicare cannot continue on its current course, so politicians are forced to grapple with the elephant in the room. It’s not newsflash that Medicare will run out of money for hospital care by 2024, and the taxes that are coming in will pay only 90% of the benefits.
Who do we blame?
We could blame the 1.5 million baby boomers a year who sign up for Medicare, but that would be ridiculous. Obviously, that question could have been addressed much earlier. Others point to rampant abuse and fraud in the Medicare system, which runs into billions of dollars. Another problem is the 20 to 30 percent of Medicare spending that is wasted on unnecessary procedures.
The future of Medicare
You don’t need a crystal ball to see what Medicare will look like in the future; just listen to what current and soon-to-be elected officials are saying. Both Democrats and Republicans agree on things like:
- Limit the overall growth of Medicare spending.
- The withdrawal of the middle and upper class pays more money.
- Increased age of eligibility.
That last one seems familiar to me. Oh yes, it’s true! You are already applying for Social Security benefits. The chances of someone in their 40s ending up receiving Social Security or Medicare benefits are getting slimmer.
One of the big proposals was the 100% privatization of Medicare proposed by Rep. Paul Ryan. You have now changed your plan to include Original Medicare as an option. What most people don’t realize is that privatized Medicare already exists in the form of Medicare Advantage. In fact, 25% of all Medicare beneficiaries are enrolled in a Medicare Advantage plan. These plans in their current state make sense for many beneficiaries looking to control costs and take advantage of the savings these plans offer. Medicare Advantage Plans are offered by many companies such as Humana, United Healthcare, Wellcare, and Health Springs.
The bottom line
For people 55 and older, you will most likely not see any change in your Medicare benefits, as most legitimate proposals are not directed at you. However, if you are under the age of 55; Be prepared that the “status quo” is not acceptable. Medicare will be very different for you if it still exists!