Medicaid_08

Medicaid_08 - Medicare and Medicaid PAM 435 February 28,...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Medicare and Medicaid PAM 435 February 28, 2008
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Objectives of Medicare Lecture structure of Medicare how Medicare is financed: who pays for it? why Medicare needs to be restructured what will happen if Medicare is not restructured soon some possible Medicare policy changes
Background image of page 2
Medicare Prescription Drug, Improvement and Modernization Act (MMA) 2003 Medicare outpatient Drug Benefit (“Part D”) began January 1, 2006 Estimated cost of $400-500 billion over initial ten years Financing mechanism similar to Part B (optional) Drug benefit offered through private plans: (1) Stand-alone prescription drug plans (PDP) or (2) Medicare Advantage plans such as a Medicare HMO Standard Coverage, 2007 Premium (~$27 per month) $265 deductible 25% co-insurance rate until $2,400 Gap in coverage occurs from $2,400-$5,451 5% co-insurance after $5,451 (catastrophic coverage) Medicare provides additional assistance to beneficiaries who qualify based on low incomes and limited assets
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Medicare Beneficiaries Out-of-Pocket Drug Spending under the Medicare Rx Benefit, 2007 “Donut hole”
Background image of page 4
Colbert Report Video
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Drug Program 9% (D) Medicare Payments by Type of Service, 2006 Total Health Care Expenditures = $374 Billion Home Health 4% (A) Part C 14% (C) Other Part B 9% (B) Physicians 23% (B) Hospital Inpatient 32% (A) Skilled nursing facility 5% (A) Hospice 2% (A) Source: Congressional Budget Office. (Medicare part in parentheses)
Background image of page 6
Medicare Spending Has Increased Sharply ($billions) Source: Congressional Budget Office. $37.0 $86.0 $160.0 $209.0 $342.0 1980 1988 1994 2000 2005
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
How is Medicare Financed? Part A (Hospital Inpatient) Part B and D (MD, Outpatient, Rx) “Pay-as-you-go” system Employees and their employers each pay a 1.45% Medicare payroll tax on earned income Part A Trust Fund was running a surplus until 2007; is expected to “run out” in 2020. Federal tax revenues cover 75% of the Part B and Part D costs Elderly pay premiums of $93.50 per month in 2007 for remaining 25% of Part B Elderly pay premiums of $27 per month in 2007 for the remaining 25% of Part D
Background image of page 8
Number of workers per Medicare beneficiary Source: Annual Reports of the Medicare Board of Trustees. 3.7 4.0 3.9 2.4 1970 2000 2006 2030(e) As Baby Boomers Retire, Fewer Workers Will be Paying Payroll Taxes For Each Medicare Beneficiary
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Source: OMB. Social Security 21% Defense Discretionary 19% Defense Non- Discretionary 18% Medicare 14% SCHIP 7% Other 12% Interest 9% 21% of Federal Budget Was Allocated to Health Care Programs in Fiscal 2007 100% = $2.77 trillion
Background image of page 10
What Will Happen if Medicare is Not Restructured? Pressures: more people are retiring; elderly are living longer; medical costs are particularly high for the elderly; medical costs are rising rapidly; elderly pay (and paid) for a small % of their medical costs.
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/12/2008 for the course PAM 4350 taught by Professor Nicholson during the Spring '08 term at Cornell.

Page1 / 35

Medicaid_08 - Medicare and Medicaid PAM 435 February 28,...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online