Health reform may cause Medicare premiums to rise
August 6, 2010
As the recent changes in healthcare start to take effect, a little-known alteration to Medicare may end up costing senior citizens more than before, reports DailyFinance.com. This is the result of a sweeping, cost-saving modification to the Medicare plan, which will end up saving $575 billion over the next ten years.
However, seniors under Medicare Advantage plans may now be negatively affected by the reform, because of reduced payments to insurers. This could include a reduction in services that ranges from dental coverage to free eyeglasses, according to the news source.
Around 25 percent of seniors are currently enrolled in these programs and, when these changes in healthcare begin to take place, they may see spikes in premiums if they choose to switch plans due to the new lack of benefits.
Joseph Antos, a health care scholar at the American Enterprise Institute, told the news provider that these measures could prove extremely costly, as some hospitals and nurisng homes may even stop providing Medicare services, since reimbursement will now be lower than before and no longer cost-effective.
Industry analysts suggest that senior citizens should try to cut costs in healthcare whenever possible. Having a medical alarm system in a home will serve to protect older adults who get hurt in their homes while living alone, and may prevent unnecessary stays in the hospital.