The threat that Medicare faces and its impact
A lot of US citizens are dependent on Medicare for their health care services. However, the future of Medicare is at stake since the federal funds backing the program will presumably dry up. The absence of Medicare might be a concern for the younger generations now, since in the future, when they grow old or disabled, it will be difficult for them to bear the costs of health care.
Health care for the senior citizens has been made much easier with the introduction of the Medicare program in 1965. The federally backed national health insurance program lends assistance to the elderly and the disabled by facilitating medical care.
More than 50 million American citizens are dependent on the Medicare program. However,
as more and more people register under the national health coverage program, the federal funds which support the program is gradually getting exhausted. Thus, the younger generations of today should be concerned about the future of Medicare, since by the time they attain the permissible age to get advantage of the federal program, Medicare may get terminated.
Medicare Benefits
The rising medical costs may be a burden for some, especially for individuals who have retired or those with limited finances. Medicare tries to make healthcare affordable for those who are 65 years of age and above, or for those who suffer due to a specific disability or are terminally ill. Along with the regular medical services, it helps to pay for the hospital in-patient care and prescription drugs of the individual. Though it doesn’t compensate all of the health care expenses, it significantly reduces the medical bills of the aged and the disabled.
What if Medicare ceases to exist?
It’s evident that if the federal fund supporting the Medicare program gets exhausted, the elderly and the disabled will face troubles in the future. Usually these groups of people have limited financial resources, since either they are retired or are unable to work due to old age or existing disability. Moreover, they find it difficult to obtain health care coverage due to the pre-existing conditions. The insurers usually consider them as ‘high-risk’ individuals and charge them high rates for coverage. Thus, without Medicare, such individuals will have to pay exorbitant premiums to stay covered.
The Patient Protection and Affordable Care Act aims to bring the health care costs under control and has been trying to bring in new reforms in the industry. The new provisions make sure that the health insurers won’t be able to deny coverage to those with pre-existing conditions. Moreover, since those without health insurance coverage will be penalized from 2014, absence of Medicare will strain out the budget for many US residents. It would mean that individuals would need to bear the costs of medical expenses and health care on their own in the future. As a result, the younger generations should start saving early for their retirement.
