A new report released recently tells about the recent health insurance reforms to help seniors. The report that was authored by Health and Human Services answers some important questions about the health insurance reform of President Obama. Vice-President Biden said that the government will protect the seniors and not put pressure on them with extra costs. He said that the new reform plan would keep the seniors better-off and they do not have to spend a dollar from Medicare trust fund to meet their medical expenses.
HHS Secretary Sebelius said that the new reform plan would bring down their health care costs. The proposed reform would bolster Medicare and at the same time cut drug costs and provide all seniors to receive high-quality and affordable health care for themselves. The reform plan has brought under limelight many problems in the present system of health care and health insurance.
Preserving and Strengthening of Medicare
The Medicare Trustee 2009 report says that the Medicare Part A Trust Fund would be completely used up by 2017. The proposed reform will further extend the Medicare Trust Fund life by another four to five years. Also of importance are the delivery system reforms that are part of the reform that will keep solvent the Trust Fund for a further period in future. There would be reduction of over-payments to private plans along with tightening up on fraud as well as abuse and result in stronger Medicare for all seniors. And along with development in health care, strengthening of health care workforce and out-of-pocket cost reduction, the new health insurance reform will guarantee Medicare to provide high-quality and inexpensive coverage that all the seniors of America rightfully deserve.
Cost Cutting of High Prescription Drug
It is a fact that expense of prescription drug is a major outlay for seniors. Although Medicare provides prescription drug benefit, the benefit encompasses the coverage gap that is also called the “donut hole”. There were over 8 million seniors who hit the “donut doe” in 2007. In case of people that do not earn low or who have not bought over coverage, the average drug costs in this coverage space would be to the tune of $340 per month totaling $4,080 per year. The health insurance reform will cover the gap in coverage in Medicare Part D with the passage of time. Hence, there is no need for seniors to be anxious about coverage loss as a result of drug costs. Along with this closure, the reform makes it certain a discount of fifty percent on the costs of brand name medication to the seniors in the coverage space, thus helping seniors to save over millions of dollars.
Free Preventive Services
There are many seniors who do not get the required care in prevention and primary health coverage, and as a result they get less useful and expensive treatments. However, the present reform makes it free to the seniors to pay for any preventive services.
Stopping Federal Subsidies to Private Insurance Companies
The health insurance reform will do away with too much of government subsidies to Medicare Advantage plans and in the process save the government, as well as taxpayers and beneficiaries of Medicare, funds to the tune of $100 billion over the next 10 years.