Congress is heatedly debating alterations to Medicare Supplemental Insurance Plans that may soon mean more out-of-pocket costs for health care.
Medicare is the government health insurance program for those 65 or older as well as younger disabled people. Medicare has never covered all of their health care needs, though. Medicare beneficiaries have out-of-pocket costs for both doctor and hospital treatments. To reduce these out-of-pocket costs, many Medicare beneficiaries add a Medigap Plan. Medigap or Medicare Supplement Insurance doesn't replace Medicare. It picks up some of the medical bills that Medicare doesn't cover.
Some experts on health care policy say that such coverage generates an increased demand for health care by reducing the amount Medicare beneficiaries have to cover for treatment. That increase in the demand for Medicare services can also be abused when providers bill for additional and unnecessary medical care. It's normal for beneficiaries to want as much health care as they can afford with the expanded coverage of Medigap Plans, but the government hasn't funded Medicare to keep up with the demand.
One response has been to propose that Medicare Supplement Insurance plans be blocked from filling all of the gaps in Medicare. To drive up out-of-pocket costs for beneficiaries, adding $530 per year to existing out-of-pocket costs is also under consideration. But, are beneficiaries the only ones on a spending spree?
Hospitals have been known to bill for services after a Medicare beneficiary's death. Fraudulent billing for services can also take a high toll on government coffers. Is it reasonable to expect Medicare beneficiaries to blow the whistle when doctors recommend tests that increase the burden of governmental funding?
A recent study by the Kaiser Family Foundation showed that increasing out-of-pocket expenses for Medicare Supplement Insurance could save Medicare $1.5 billion to $4.6 billion per year. It has also been suggested that higher out-of-pocket costs would reduce the demand for health care and in turn, lower Medigap premiums because of reduced expenses for insurance companies. Is it really necessary to take health care away from seniors and people with disabilities?
There is extensive debate over what the government can't afford, but some of the reasons for the shortfall may be surprising. According to David Cay Johnston who reported on the tax system for the New York Times, the trend for U.S. companies to drastically reduce their tax bills by incorporating in Bermuda has been growing. Johnston, who won a Pulitzer Prize for his coverage of our tax system, points out that our laws don't prevent this. He reported on a New Jersey industrial manufacturer that incorporated in Bermuda for $27,000 and could avoid at least $40 million in U.S. corporate income taxes. The company didn't even need to maintain a Bermuda office. A mail drop there was sufficient to save them $40 million or more.
How Can Medicare Beneficiaries Protect Their Health If Access To Medical Care Becomes More Expensive?
While our policymakers are still debating over what to do with Medigap Plans, you can take measures to reduce your out-of-pocket costs for health care.
The more you work to improve your health, the less you'll have to spend on medical intervention regardless of Medicare politics. Exercise plays a major role in keeping the body fit and improving a lot of health problems. It also helps to keep your brain functioning at peak levels.
How you fuel your body is even more important than staying active. For starters, fruits and vegetables fight cancer, high blood pressure, and help you to maintain a healthy weight. Avoiding preventable disease does more than cut your cost for health care. It also makes it easier to navigate between Medicare Supplement Insurance Plans. Outside of open enrollment, it's difficult or impossible to clear medical underwriting standards to buy a supplement if your medical history is problematic.
No matter how you look at it, investing in ways to protect your health is a money saver. Perhaps that's why some Medicare Supplement Plans offer discounts on health club memberships and online access to tips to stay healthy.
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