Out-of-Pocket Costs Catching up with Medicare Beneficiaries
Medical Billing | Aug 17, 2017
Although Medicare has been a trusted health organization for almost half a decade. It covers 60% of the hospitalization, almost 80% of the doctor’s bill, and other precautionary services. However, now its beneficiaries are facing higher costs for the benefits it offers. Medicare prescription drugs should not be of out-of-pocket costs; this facility should be affordable for the people of any class whether rich or poor, but unfortunately, the prices are touching the sky. A huge population of US relies on the Medicare. And in the coming years, more people will be under Medicare coverage. However, this benefit does not include all the medical facilities.
For example, cosmetic surgery, dental and vision care, hearing aid, long term care, care delivered outside of USA, Acupuncture and other alternative care. So the beneficiaries end up paying half of their income for the benefits excluded from Medicare.
Out of pocket expenditures on health care rise up with your advancing age and declining health. As in 2006 beneficiaries aged around 75 and older had to face higher out of pocket expenses on their health than people of other age groups. And the beneficiaries with extremely poor health had to spend more than a thousand dollars on health care.
If we look at the health care budget of a healthy Medicare beneficiary today, then considering both premiums and out of pocket costs, he has to spend around 5000$ per year. Out of which 4000$ are for premiums. 800$ for the not covered prescription drugs.
Nevertheless, a new plan has been made this year, known as the plan G. Thanks to planning G, you no longer need to pay for 20% of doctor’s fee for annual check ups, flu shots and certain screening procedures that can detect medical health issues like cancer, diabetes and high blood pressure and cardiac diseases etc.
Studies have shown that around 2024, one fifth of the US population will be under Medicare converge. In return, Medicare will work hard to keep the beneficiaries healthy and in good shape.