I read with great interest from a recent Government report that Medicare is now viable until 2029 because of the new healthcare bill. The reason for this new found optimism is that they will cut $ 145 billion from the Advantage Program sponsored by private insurance companies and $ 205 billion out of provider payments. From the Governments prospective this cost savings is certainly good news.
Now let’s look at the changes from the prospective of Medicare recipients. First taking $ 145 billion away from the private insurance industry will effectively kill the “Advantage Program”. The insurance industry will flee the program like rats leaving a sinking ship! This will force the approximately 20% of Medicare beneficiaries on the Advantage Program into traditional Medicare and buy an expensive supplemental policy from the private insurance industry, if they can afford it.
The second great achievement is the saving to the government by cutting $ 205 billion in payments to medical providers. This awesome accomplishment will force doctors to drop Medicare patients like a lead balloon. There are 46.3 million Medicare beneficiaries that will be competing for the 3 doctors that will accept Medicare patients after they substantially cut Medicare payments to providers.
There will be millions of elderly Medicare patients who are actually living on their Social Security check that will be placed in an unattainable position of choosing between healthcare and survival. I can’t wait for some more good news from our Government.