Health Care Reform Essay Research Paper 915Due

Health Care Reform Essay, Research Paper

9:15

Due to the upcoming presidential election, the two major political parties, and their candidates, have been focusing on the primary problems that the nation will face. Chief among those problems is the future of Medicare, the national health-insurance plan. Medicare was enacted in 1965, under the administration of Lyndon B. Johnson, in order to provide health insurance for retired citizens and the disabled (Ryan). The Medicare program covers most people aged 65 or older, as well as handicapped people who enroll in the program, and consists of two health plans: a hospital insurance plan (part A) and a medical insurance plan (part B) (Marmor 22). Before Medicare, many Americans didn’t have health insurance coverage, but since its inception the program has enrolled almost 40 million beneficiaries, who jointly fund the insurance program along with the national government (Carnegie).

According to Dr. Don McCanne, a member of the Board of Directors of Physicians for a National Health Program, “Before the passage of Medicare in 1965, only 52% of persons age 65 and over had hospital insurance and less than 15% had adequate health insurance” (McCanne). The Medicare program has improved access to healthcare and improved the quality of life for millions of elderly members, and has provided insurance for millions of persons with disabilities. By reducing the burden of large medical bills, Medicare also has improved the economic status of the elderly. As Dorothy Price points out “Over its 33 year history, Medicare has channeled billions of dollars into the health care system, helping to foster enormous improvements in health care technology and medical education” (Carnegie). Unfortunately though, the program is now facing two major problems: beneficiaries are still having trouble in finding affordable care, and the Medicare program itself is not properly funded. As a result of these problems, the program could cease to exist unless a solution is found.

One of the problems of Medicare itself is that it doesn’t cover the costs of prescription drugs for its members; this has led to one of the major reasons that the program is in danger. A great deal of personal healthcare relies on the use of drugs, and since the program doesn’t cover these costs, the individual must bear them. According to the AARP, in 1999 out-of-pocket costs for prescription drugs were estimated to be $450 per person each year (AARP). Obviously, members have joined the program to defray their medical costs, but these figures indicate that they still have large costs to pay. The other problem faced by the Medicare program is that it is also suffering from a lack of funds. According to Governor George W. Bush, the financial health of Medicare is in serious jeopardy and might face deficit as soon as 2010 (Bush). As a result of these major problems, one might wonder why the plan isn’t scrapped for another program; well according to polls done by the Public Agenda, an Internet public policy site, American citizens are strongly in favor of Medicare, and would rather see the problems ironed out (Public Agenda). Therefore it is necessary to come up with a solution, so that the Medicare program remains intact.

The most favorable solution for these problems is for the national government to alleviate the out-of-pocket costs (such as the costs for drugs) of the beneficiaries by funding the Medicare program through the use of the national budget surplus. As of now, funding for Medicare has been provided through payroll taxes and social security taxes paid by enrolled members and their employers, and also through general revenues provided by the government. In fact, statistics provided by the United States Senate and Senator William Frist (R-Tenn.) indicate that Medicare members fund 25% (about $45/month), and the government covers the other 75% of Medicare costs (Frist). However, using revenue from the budget surplus would take the pressure off the beneficiaries and the government as well, by steadily lowering payroll and social security taxes.

Another important reason that makes this proposal worthy is the fact that the national budget surplus will continue to increase beyond 2010. In fact, according to George W. Bush, the budget surplus is expected to grow well past $5 trillion over the next 10 years (Bush). Considering the fact that Medicare expenditures project to cost around $452.2 billion over that same period (Bush), there will be plenty of money still available for military, education, and other government expenditures. Obviously, if the budget surplus were to decrease or remain stagnant over this time, it would be very costly to maintain Medicare under this proposal, but due to the budget’s optimistic (to say the least) outlook, the proposal is very sensible and effective.

Perhaps the only other alternative to Medicare itself would be for the government to adopt a centralized form of healthcare, similar to the one employed in Canada. In that program, every citizen would be entitled to the same benefits regardless of age, disability, or unemployment. Although this program seems like it would be for the best, it would take many years to implement the system. Legislation for a major issue such as healthcare normally spans several years (Frist), and is one reason that the government and neither party has ever brought the idea to the