Medicare Healthcare Cost

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Medicare and Health Care Costs Medicare is the fastest- growing program in the federal budget, already accounting for approximately 15% of federal spending. In 2012, Medicare’s aggregate spending reached $557 billion, and experts estimate this will nearly double in a span of ten years, reaching a total of over a trillion dollars by 2023. In 2011 Medicare spending accounted for 3.67% percent of the entire economy, measured as gross domestic product (GDP). According to the Medicare Actuary’s full alternative scenario, which uses the most realistic assumptions, Medicare will account for 5.8 % of the GDP in 2030. Under these same assumptions, by 2080 Medicare spending will account for 9.97 % of the entire economy (Moffit & Senger 2013).…show more content…
The new law, while protecting guaranteed benefits for all Medicare beneficiaries, also provides new benefits and services to seniors that will help them to remain healthy. The law also includes provisions targeted at improving the quality of care, streamline our health care system, develop and encourage new models of care delivery, suitably price services, and combat waste, fraud and abuse. The implementation of these changes will extend the life of the Medicare Hospital Insurance Trust Fund by 12 years, this is more than double the time before the exhaustion of the program (Affordable Care Act Update: Implementing Medicare Cost Savings,…show more content…
The law also goes beyond these two critical areas by chronicling a course for initiating a value- based payment strategies for additional providers in Medicare, this will include: skilled nursing facilities, home health care providers, hospice, ambulatory surgery centers, and rehabilitation hospitals. The OAct estimates these provisions to improve Medicare’s physician payment methodology will reduce Medicare costs by over $1.9 billion over 10 years (Affordable Care Act update: Implementing Medicare Cost Savings, 2010). These quality improvements represent a fundamental change in in the way this program will lead in the effort to improve health care outcomes not only for Medicare beneficiaries but for patients throughout the health care system. These improvement initiatives will not only benefit hundreds of thousands of individuals to experience better care, but will also reduce Medicare spending by more than $15 billion over the next ten years (Affordable Care Act update: Implementing Medicare Cost Savings,

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