Tuesday, January 29, 2013

FINANCING MEDICARE B: A COMMENT

In 2010 there were 47.5 million people on Medicare (http://www.census.gov/compendia/statab/2012/tables/12s0146.pdf)  Looking at the table, it looks like the number of people on Medicare is growing about 0.1 million/year so in 2013, the number should be close to 47.8 million.  Each of these people pay a deductible of $300 on the first $300 of expenses.  Suppose the deductible is raised by $10 to $310, then $480 million in additional revenues would be raised.  If the deductible is raised by $20 to $320, nearly a billion dollars would be raised.  This should help Medicare expenses considerably and not be too arduous on even those poor who can raise the $300.  Though this option has been discussed elsewhere, it does not receive any press.  I think it is preferable to raising the age of qualification, for example.

As distasteful as it is to our politicians, there should be tort reform too at the very least.

The reduction in reimbursements to doctors, has now been rejected by law and the so-called annual "doctors fix" has been made permanent.

Hospitals have agreed to a lowing of their rates because they expect increased activity from the increased personal coverage of Obamacare.

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