Medicare solvency 2

Running Header: MEDICARE SOLVENCY
Tunisia I.E. Al-Salahuddin (RMT/BSHS/MS-Organizational Leadership |
Course of Study: The US Health System HCM500-1
Degree: Master - Healthcare Administration and Management| March 14, 2016
Medicare Solvency
{Health Services Financing}
Abstract
The Medical, Medicare, and
Medicaid programs where installed
within the systems of the United
States to ensure that all had adequate
health care regardless of financial
status. “The Social Security
Amendments of 1965 resulted in the
creation of two programs to provide
federal health insurance: one for
those over the age of 65 (Medicare),
and one for poor families
(Medicaid). The United States finally
had its first public health insurance
programs” (CSU, 2016). Within this
discussion essay I will elaborate on
the status of the social security acts
that where established in 1965 and
the current state of the funds.

MEDICARE SOLVENCY 1
Table of Contents
Introduction Pg. 1
Medicare Solvency Pg. 3
What is the Medicare Trust Fund? Pg. 3
What is the Current State of the Fund? Pg. 4
What are the Future Challenges Faced by the Fund? Pg. 6
Discuss the Factors that Have Created these Challenges. Pg. 8
Conclusion Pg. 9
(Reference) Annotated Bibliography Pg. 10

MEDICARE SOLVENCY 2
Introduction
Past President Franklin Roosevelt and Lyndon B. Johnson enacted ACTS and
legislation to help the United States Poor to ensure they has proper health care insurance.
“The Social Security Act was passed by Congress as part of President Roosevelt’s
Second New Deal agenda. In signing the Act into law on August 14, 1935, Roosevelt
became the first president to advocate for and create legislation for the provision of
governmental assistance for the elderly at the federal level” (CSU, 2015). Considering
the new policies and new developments of the country to ensure that housing, food, and
work was also available. Time was surely of the essence considering it was the turn of the
century and the United States was implementing new changes and programs within the
United States.
Medicare Solvency is the ability of the country to pay for the health of the country
without becoming insolvent and leaving the poor without adequate health benefits. The
insolvency of the United States can be contributed to the fact of over spending on drugs
and other factors within health and health crisis. Even though ACTS where employed in
the 30’s did the United States really know that due to immigration, some form of poverty,
and the populations’ health crisis that the health care delivery system would lead to such
an issue within Medicare? Today you watch the first Lady Michelle Obama preparing
the Nation for what is to come if there is a insolvency within the Medicare Social
Security ACTS meaning: Take care of your bodies just in case the funding is destitute.
Within this discussion essay I will elaborate on the insolvency possibility and the current
solvency in the Now!

MEDICARE SOLVENCY 3
Medicare Solvency
Currently there is an issue within the United State Medicare program that will lead to
insolvency if the fund is not replenished as soon as possible. There is solvency where
patients care can be paid for, but if the population continues to remain un-educated about
the health and welfare of the nation’s medical conditions that puts them into a state of un-
healthy living and behavior then the insolvency condition will be a norm for the United
States starting within this year of 2016. “The trustees said the fund would last longer than
previously thought because ``expenditures in 2013 were significantly lower than the
previous estimate.'' They said changes to Medicare under President Barack Obama's
healthcare overhaul appeared to be creating "substantial savings.'' At the same time,
trustees for the country's Social Security program repeated their warning that Washington
would run out of the money needed to fully pay disability benefits by 2016” (CNBC,
2014). Rather this be true or not this should be a wakeup call to all whom are in poor
health to do their best to obtain ultimate health if possible. Currently the United States
can pay for benefits, but what are some of the other factors that contribute to the
depletion of the Medicare Fund? In the next paragraph topics I will discuss more in-
depth what the fund is! What is the current state of the fund! I will discuss current
challenges that the fund face.
What is the Medicare Trust Fund?
Many do not know that the Medicare program are actually two programs
within the United States of America. These accounts are
 Hospital Insurance (HI) Trust Fund

MEDICARE SOLVENCY 4
 Supplementary Medical Insurance (SMI) Trust Fund
Hospital Insurance Trust Fund pays for the benefits of employees, retired employees,
and business owners. This fund also pays for in-service and outpatient services of the
patients. Medicare part A is what they consider the hospital insurance
The Supplementary Medical Insurance (SMI) Trust Fund is a fund referred to
as part B coverage which pays for prescriptions and other services. Some people may
feel as though part B and D benefits are better options, but the patient or employee has to
pay more into the fund in order to obtain the services. “Medicare isn’t part of the Health
Insurance Marketplace established by the health care law, so you don't have to replace
your Medicare coverage with Marketplace coverage. No matter how you get Medicare,
whether through Original Medicare or a Medicare Advantage Plan, you’ll still have the
same benefits and security you have now” (2016. Medicare.gov). The supplementary can
be somewhat considered an extra that can help alleviate any overhead charges or keep
you from paying out of pocket. Many consider it to be money in the bank.
What is the Current State of the Fund?
The current state of the state fund is not insolvent but solvent until 2030, but the
government along with Social Security are making cut backs to ensure that the funds do
not run out before then. One of the systems they use is called forecasting which gives a
report and budget on spending that the Medicare insurance fund will allow and dis-allow
for patients. This state funding also involves generic prescriptions vs brand names, and

MEDICARE SOLVENCY 5
dental work to be done. According to the Center of
Budget and Policies Priorities, “The 2015 report of
Medicare’s trustees finds that Medicare’s Hospital
Insurance (HI) trust fund will remain solvent — that is,
able to pay 100 percent of the costs of the hospital
insurance coverage that Medicare provides — through
2030. Even in 2030, when the HI trust fund is
projected for exhaustion, incoming payroll taxes and
other revenue will still be sufficient to pay 86 percent of Medicare hospital insurance
costs” (2015, Van De Water).
What is taking place even within the ‘Health Care Reform Act” is a depletion and
replenishing of the Fund or what you may call a reorganizing of the fund to find ways to
make people more self-sufficient and not so reliant on the Medicare Funds. I do believe
it was President Bush whom stated that people would have to open separate accounts on
their own specifically for medical reasons during the time they work. They could put as
much or little in these accounts during the duration of their employment. The good thing
about this is you could actually help a family member in need along with purchasing
private insurance so the two could work in conjunction with one another. This is a great
plan for employees to purchase private insurance that could be used after retirement and
the medical bank account that could only be used for medical purposes. President Bush’s
2004 state of the Union address he stated,”

MEDICARE SOLVENCY 6
“To make insurance more affordable, Congress must act to address rapidly rising
health care costs. Small businesses should be able to band together and negotiate
for lower insurance rates so they can cover more workers with health insurance. I
urge you to pass Association Health Plans. I ask you to give lower-income
Americans a refundable tax credit that would allow millions to buy their own
basic health insurance. By computerizing health records, we can avoid dangerous
medical mistakes, reduce costs and improve care. To protect the doctor-patient
relationship and keep good doctors doing good work, we must eliminate wasteful
and frivolous medical lawsuits. And tonight I propose that individuals who buy
catastrophic health care coverage, as part of our new health savings accounts, be
allowed to deduct 100 percent of the premiums from their taxes. A government-
run health care system is the wrong prescription. By keeping costs under control,
expanding access and helping more Americans afford coverage, we will preserve
the system of private medicine that makes America's health care the best in the
world”(2004, SUA).
What are the Future Challenges Faced by the Fund?
Some of the future challenges regarding the state of the fund is will everyone
accepting the policies that have been put in place. By 2030 there will be a new
system based off an old system of doing things; particularly business, and health
care. Healthcare is big business weather you be in the Holistic field or Western
Medical Field of the spectrum. Many of the other challenges that the patients
may face are prescription drug are booming within the United States whom some
call a pill farm. Many patients are reliant on pills and prescription drugs without
outsources or searching for alternatives for pain and illness. CBPP stated, “Some
additional savings can be achieved over the next ten years, however, while
preserving Medicare’s guarantee of health coverage and without raising the
eligibility age or otherwise shifting costs to vulnerable beneficiaries. Possible
measures include ending Medicare’s overpayments to pharmaceutical companies
for drugs prescribed to low-income beneficiaries, increasing funding for actions to
prevent and detect fraudulent and wasteful Medicare spending, further reducing

MEDICARE SOLVENCY 7
overpayments to Medicare Advantage plans, and ensuring efficient payments to
other health care providers” (2015, CBPP). One of the biggest challenges that the
fund will encounter is the total reduction of the account which they have already
projected to occur in 2030 with new policies in place to create a new
infrastructure which some say is part of the New World Order. This order will
make patients and Americans more responsible for their own selves and self-
sufficient lives. I would consider this to be a self-preservation system that makes
each person whom works take charge of their own health care benefits. I would
really have to say that the measures that Bush wanted to install would wing the
people off Medical and Social Security benefits. This is also why Bush enacted
the ADA Acts for the disabled to ensure that all can work, keep their dignity, and
be self-sufficient.
Now the sad part about this reconstruct of the Medicare Fund is the sure fact
that some will fall off and possibly not make it through due to not being able to
pay for health insurance based off solely not working or such horrific chronic
conditions will not allow them the ability to thrive. Between now and 2030 the
government is setting up a system of working and paying for self every step of the
way. Everyone must work regardless of disability and there will be a job for
everyone. Do I call this communism? No! Some people will make more than
others based off applying themselves through education and other factors like
creating a perspective for life. Within these next 14 years there will be an
urgency to get people within communities the knowledge that is needed to take

MEDICARE SOLVENCY 8
care of their bodies and to wing them off the old system and way of living
improperly.
Discuss the Factors that Have Created these Challenges.
If you know anything about legal aspects then you know within the legality of the
entire depletion of the Medicare system there will be some lawsuits to come in regards to
patients’ rights, billing, and also proper services. It really is not up to the doctor to say
who lives, who dies, and who gets services, but more or less the medical billing
companies and the insurance companies make up a major part of the decisions for
patients care. Within chapter 1 of Jones and Bartlett the authors stated, “Americans as a
society are quick to engage in lawsuits. Motivated by prospects of enormous jury awards,
people are easily prompted to drag alleged offenders into the courtroom because of the
slightest perceptions of incurred harm. Because private health care providers are
increasingly becoming more susceptible to litigations, risk of malpractice lawsuits is a
serious consideration in the practice of medicine” (2016, Jones & Barlett). Since
Americans are so use to having many free services given to them it will be somewhat of a
challenge to encourage patients to purchase private health care and supplement private
health care with the tax free medical savings account. This option would be actually
better because more services would be paid for by the patient, but creating the
infrastructure for this to happen is a birth in progress. The United States must create a
viable infrastructure where people can work then employees can buy into the plan. This
also creates an infrastructure where the young take care of the old over 70.

MEDICARE SOLVENCY 9
Conclusion
The reform acts and all the other legislations and ACTs that engross the entire health
care delivery system is a work in progress. From George W. Bush taking the initiative to
redesign the Health Care system to make the client/patients more self-sufficient and able
to do for self vs be reliant on a system that does not allow you to do for self when it
comes to the quality of care and the insurance carriers you choose. When you think
about the Medicare Fund depleting its self by 2030 some may think that catastrophe
events will take place and all forms of hades will be let loose. Well there may be some
form of mishap but there will also be order being created as well. This order will give
more adults an understanding of being self-reliant and taking care of one another.
“Health reform envisions that Medicare will continue to lead the way in efforts to slow
health care costs while improving the quality of care. The research and pilot projects that
the ACA establishes should yield important lessons. Until these efforts bear fruit, it will
be difficult to achieve big additional reductions in Medicare expenditures” (2015, Van De
Water). The Social Security Fund Trustees surely have a major of redesigning to do to
ensure that adequate health care will be readily available for all Americans that purchase
private health care and those who buy into the tax free account, but according to the
trustees the fund cannot go bankrupt, but in the light of things it will go bankrupt but
replenish its self in other ways through other methods, measures, and factors to develop a
viable system of health care delivery.

MEDICARE SOLVENCY 10
(Reference)
Annotated Bibliography
C. (2016). The U.S. Healthcare System Module 2: Health Services Financing. Retrieved
March 14, 2016, from https://app.schoology.com/external_tool/196755551/launch
“The Social Security Amendments of 1965 resulted in the creation of two programs to
provide federal health insurance: one for those over the age of 65 (Medicare), and one for
poor families (Medicaid). The United States finally had its first public health insurance
programs”
Within this online PowerPoint interactive lecture CSU Global discusses the Social
Security Acts that where employed by Theodor Roosevelt and Lyndon Johnson. The
lecture discusses the purpose of the Social Security Act along with the health care bills
that where passed for Medical, Medicare, and Medicaid.
F. (2004). Text of President Bush's 2004 State of the Union Address. Retrieved March
15, 2016, from http://www.washingtonpost.com/wp-
srv/politics/transcripts/bushtext_012004.html
“To make insurance more affordable, Congress must act to address rapidly rising health
care costs. Small businesses should be able to band together and negotiate for lower
insurance rates so they can cover more workers with health insurance. I urge you to pass
Association Health Plans. I ask you to give lower-income Americans a refundable tax
credit that would allow millions to buy their own basic health insurance. By
computerizing health records, we can avoid dangerous medical mistakes, reduce costs
and improve care. To protect the doctor-patient relationship and keep good doctors doing
good work, we must eliminate wasteful and frivolous medical lawsuits. And tonight I
propose that individuals who buy catastrophic health care coverage, as part of our new
health savings accounts, be allowed to deduct 100 percent of the premiums from their
taxes. A government-run health care system is the wrong prescription. By keeping costs
under control, expanding access and helping more Americans afford coverage, we will
preserve the system of private medicine that makes America's health care the best in the
world”(2004, SUA).
Former President Bush’s state of address gives a clear understanding into what the plans
are for the near future and present within The Social Security Medicare Fund. He address
what the challenges are and what the plan is to create a tax free account for employees to
pull from for medical reasons during and after employment.
L. S., & D. S. (2015). The 2015 report of Medicare’s trustees finds that Medicare’s
Hospital Insurance (HI) trust fund will remain solvent — that is, able to pay 100

percent of the costs of the hospital insurance coverage that Medicare provides —
through 2030. Even in 2030, when the HI trust fund is projected for exhaustion,
incoming payroll taxes and other revenue will still be sufficient to pay 86 percent
of Medicare hospital insurance costs. Retrieved March 15, 2016, from
http://www.cbpp.org/research/health/medicare-is-not-bankrupt
The 2015 report of Medicare’s trustees finds that Medicare’s Hospital Insurance (HI)
trust fund will remain solvent — that is, able to pay 100 percent of the costs of the
hospital insurance coverage that Medicare provides — through 2030. Even in 2030, when
the HI trust fund is projected for exhaustion, incoming payroll taxes and other revenue
will still be sufficient to pay 86 percent of Medicare hospital insurance costs.
The six edition of the Delivering Healthcare in America: A Systems Approach discusses
priorities and policies that govern the Medicare Fund and ways to alleviate the cost and
financial burdens.
R. (2014). Main Medicare fund to run out of money in 2030. Retrieved March 15, 2016,
from http://www.cnbc.com/2014/07/28/medicare-solvent-until-2030-social-
security-until-2033.html
“The trustees said the fund would last longer than previously thought because
``expenditures in 2013 were significantly lower than the previous estimate.'' They said
changes to Medicare under President Barack Obama's healthcare overhaul appeared to be
creating "substantial savings.'' At the same time, trustees for the country's Social Security
program repeated their warning that Washington would run out of the money needed to
fully pay disability benefits by 2016” (CNBC, 2014).
Within the CNBC report the writer discusses the solvency issue within the Medicare
Social Security Fund that needs to be addressed by the government and the people. The
issue of the fund running out between 2016 and 2030 which pays for a large percentage
of American people.
M. (2016.). The Affordable Care Act & Medicare. Retrieved March 15, 2016, from
https://www.medicare.gov/about-us/affordable-care-act/affordable-care-act.html
“Medicare isn’t part of the Health Insurance Marketplace established by the health care
law, so you don't have to replace your Medicare coverage with Marketplace coverage. No
matter how you get Medicare, whether through Original Medicare or a Medicare
Advantage Plan, you’ll still have the same benefits and security you have now”
Major Characteristics of U.S. Health Care Delivery. (2015.). Retrieved March 15, 2016,
from http://www.jblearning.com/samples/0763763802/63800_CH01_Final.pdf

The affordable Care Act was established to help employees and business owners alike
with medical insurance. Within this website that is supplied by the government they
clearly state that the fund is not part of the open market place, but is an actually funded
program by the employees and business owners that must be replenished.
Americans as a society are quick to engage in lawsuits. Motivated by prospects of
enormous jury awards, people are easily prompted to drag alleged offenders into the
courtroom because of the slightest perceptions of incurred harm. Because private health
care providers are increasingly becoming more susceptible to litigation, risk of
malpractice lawsuits is a serious consideration in the practice of medicine. This article
discuses aspects of the health care delivery system and how health care is administer to
patients within the United States.

Medicare solvency 2

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