Category Archives: medicare

Pork in the Health Care Reform Bill and Medicare

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With the passage of the new senate health care reform bill and its move from a private committee to the public light, now gives analysts some time to see what is in the bill and what pork was added to buy the votes it needed to pass. In terms of Medicare, many people are also concerned that even though there are higher tax rates for Medicare, there will also be cuts to service.

It looks like doctors and hospitals in a number of states will be getting paid more, as senators traded their vote on the health care reform issue in return for pork for their state.

Pork Report: Medicare and Medicaid Bribes

In return for the votes of the Senators from North Dakota, Byron Dorgan and Kent Conrad, an amendment was added to the bill, which requires higher payments from Medicare to hospitals in their state. This amendment, dubbed the Frontier Amendment, will funnel $650 million more into the hands of doctors and hospitals in North Dakota over the next 10 years.

In return for the votes of the senators from Hawaii and Michigan, doctors will also earn more for their Medicare Payments, while also reducing costs for Blue Cross and Blue Shield, a major insurance company, in Michigan.

The votes from Vermont and Massachusetts senators were also similarly won, with larger payments going towards Medicaid. Vermont is expected to take in a $250 million windfall.

There is also an Amendment that will funnel $100 million dollars into one of several prospective states, in order to build a new hospital/research center. While the winner of this bride is not known yet, it was promoted by Senator Dodd, in the hopes of funneling it into his home state of Connecticut.

In what is now being called the “New Louisiana Purchase,” senator Mary Landrieu in Louisiana was paid off with a $300 million expansion to Medicaid Funding.

While there is still much to review, it is clear that the Pork was effective, securing the necessary votes to pass what is being referred to as health care reform. Despite these big payouts to increase payments to doctors and hospitals, there are still a number of cuts to Medicare Funding, including some reductions in how Medicare Advantage Plans will be paid.

While there are certainly a number of good points to the Health Care Reform Bill passed by the Senate, it ultimately ends up forcing people to buy into private insurance companies, while providing few mechanisms to actually ensure that the private insurance companies do not simply raise their premiums.

All of the good in this bill could have been made without funneling money into the corporations, who indecently spent around $700 million bribing our political leaders for the last two years. However, they do not work for us, so we will get reform in the sense of raising bonuses for the health insurance CEO’s.

What is Medicare?

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Medicare is a health insurance program that was established by the federal government in 1965. It was part of the Social Security Act of 1965, which was signed by President Lyndon Johnson on 30 July, 1965. Arguably, Medicare is a type of socialized medicine, which is administered by the Government, but since the actual medicine and treatment is preformed by private doctors and the governments role is more of as a supervisor, Medicare would technically be a Social Insurance Program.

Those that qualify for Medicare are able to receive reimbursement for their medical costs, including doctors visits and medical equipment, but as of recently, also prescription medication.

How is Medicare Funded

Medicare is paid for by taxes, which are taken out of workers paychecks. Currently, 2.9 percent of a persons income is taken for Social Security taxes, with the employee paying half of this and the employer paying the other half.

Part of the requirements for participating in Medicare, or at least participating without paying extra fees, is that the person has paid enough money into Medicare throughout their life.

Requirements for Medicare Coverage

Medicare is designed primarily to help cover the medical costs of those who are over 65, legal residents of the United States, and have been paying taxes for at least 10 years. However, in certain cases, usually due to disability, Lou Gehrig’s Disease, or renal failure, it may be possible to receive Medicare Benefits before the age of 65.

Currently, congress is discussing allowing those who are over 55 to buy into Medicare Early, as part of the current health care reform that is taking place in Congress. This is, however, still under wraps, so it remains to be seen if this will make it into the final bill and what the buy in cost will actually be.

What is Covered By Medicare?

This is something that I will go into further in my later posts and will update this one as well, but Medicare covers doctors visits, certain hospital stays, many types of home medical equipment, as well as prescription medicine.

However, when you sign up for Medicare, you are given the opportunity to decide what type of coverage you would like to receive. The different types are decided into Parts, such as Part A Medicare and Part B Medicare, and you will usually be given the opportunity to enroll in whichever parts you qualify for.

Those who have insurance through an employer can usually wait on deciding without penalty, but otherwise, adding on coverage later, especially prescription medicine coverage, will have a few hurdles.

In addition to Government Run Plans, it is also possible to sign up for a Medicare Advantage Plan, which is actually run by a private insurance company, but because these are allowed to be slightly different from traditional Medicare, it is imperative to carefully read the plan and compare it to regular Medicare.

How can I Find Out More Information About Medicare?

I would encourage you to check back at this blog regularly, as we will be updating it with more information about how Medicare Works, what Medicare Covers, and current news events.

With that said, one of the best places to find out about Medicare is to visit the official Medicare site. They have a tremendous amount of information for those on Medicare or curious about how it works, including sections to find out Your Medicare Coverage.