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Medicare Is Changing! Like It or Not!

January 11, 2012 | Comments: 0 | Views: 139

Medicare has been in the headlines recently with the elections right around the corner! This article isn't about Republican versus Democrat, but more about the fact that Medicare is going to change regardless of who or what party takes office!

The reason is simply that Medicare can not continue on its current course so politicians are forced to deal with the Elephant in the room. It's not breaking news that Medicare is due to run out of money for inpatient care by 2024, and the taxes that are coming in will pay for only 90% of the benefits.

Who Do We Blame?

We could blame the 1.5 million baby boomers a year signing up for Medicare, but that would be ridiculous. Obviously, that issue could have been dealt with well before now. Others point to rampant abuse and fraud in the Medicare system which runs into the billions of dollars. Another issue is the 20 to 30 percent of Medicare spending that is wasted on procedures that are not necessary.

The Future of Medicare

You don't need a crystal ball to see what Medicare is going to look like in the future; simply listen to what current and soon to be elected officials are saying. Democrats and Republicans alike are in agreement on things like:

Limiting the overall growth of Medicare spending.Having upper and middle class retirees pay more money.Raising the eligibility age.

That last one looks kind of familiar. Oh yeah, that's right! It's already being done to Social Security benefits. The chances that someone in their 40's now will end up receiving Social Security or Medicare benefits is looking slimmer and slimmer by the minute.

One of the big proposals out there was 100% privatized Medicare proposed by Rep. Paul Ryan. He has now changed his plan to include original Medicare as an option. What most people don't realize is that privatized Medicare already exists in the form of Medicare Advantage. In fact, 25% of all Medicare beneficiaries are enrolled into a Medicare Advantage plan. These plans in the current state make sense for a lot of beneficiaries who are looking to control costs and take advantage of the savings that these plans offer.

The Bottom Line

For people 55 and older, you will most likely not see any change to your Medicare benefits as most of the legitimate proposals don't target you. If you are under 55, however; be prepared that the "status quo" is not acceptable. Medicare for you will be much different if it is even still around at all!

Matt Spitsbergen is married with three children and is a resident and native of Florida. He is a licensed insurance agent and has worked in the Medicare field for many years. He runs a blog about the most recent changes and updates to Medicare at

Source: EzineArticles
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