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22 March 2019

Research Paper: Medicare

Healthcare has always been an essential part of any nation. A healthy society will always

have a better economy, better infrastructure development, and vibrant citizenship. The primary

need for good healthcare has sparked the debate of whether it is the prerogative of the individual

or the government to ensure the nation is healthy. This paper looks into the issue of healthcare

and a particular focus on Medicare; a government-sponsored health insurance scheme. Medicare

has not been adequate to its target citizens this far and has received numerous complaints.

Medicare is defined by the CATO institute as a federal program that offers health

insurance worth an estimated $600 billion. The program mainly targets senior citizens, disabled

people and people who fit into specific criteria stipulated by the federal government (CATO

Institute). Medicare has been linked to the lack of proper innovation in the healthcare sector, but

in other cases, it has been credited with offering lower-cost policies that are affordable to those

enrolled in the program.

Medicare as an idea has enjoyed much political acclaim over the years and the plans to

implement and proposals to make changes have always been rife. The initiative is meant to

provide healthcare at a substantial fee that will be affordable to all citizens. It also focuses on

medication prices but with a preference for having private companies insure medical advantage
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and drugs. Most of the population that is covered by Medicare which pays for hospital and

medical insurance are usually forced to have other premiums or use cash payments in some other

cases (Anderson, Liu and Friedberg). Any aspect of health not covered by Medicare is left to the

individual to cater to, and these are some of the reasons that make it ineffective.

The government operates in a way that harms and in some instances protects the

taxpayer. The magnitude of the cost of health is resoundingly clear of a system that has failed to

keep the interests of its citizens at heart. Tax cuts that reached to excesses of $348 billion were

recorded for companies that provided insurance for their employees. This translated to

employees seeking health coverage from private firms that would see you spend three dollars

against one if the program was government sponsored (Badger). The focus has to be on the

people who are seeking medical help not on lining the pockets of corporations with tax breaks

that significantly affect the taxpayer.

Another apparent issue is the payments that are made for insurance covers. People have

been increasingly aware of the high costs of healthcare and prefer to make payments to different

insurers to offset expenses. However, this adversely affects their income. Medicare has been

advocated for by six in ten Americans who also desire to see the government take responsibility.

According to a survey conducted, about 61% of people believe their federal government should

take charge of health, and about 31% of the people prefer a single insurer (Kiley). People have

too much faith in the government and expect everything to be done for them regardless of their

contributions. The feeling of entitlement has been one of the reasons that many systems fail and

the healthcare sector has not been spared from it.

The Medicare program has had some significant drawbacks to it that make it susceptible

to failure. The program has no limit on out-of-pocket spending for the beneficiary. There should
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be a set standard to define how much the person pays and how much of the cost is covered by the

scheme as well as their insurer. If limits are not set, then there is bound to be an influx on

amounts claimed by different people that will eventually see the program collapse (Anderson,

Liu and Friedberg). The other issue of note is benefits offered do not cut across all medical areas,

and in some other cases, the cover range varies differently on the parts you are subscribing to in

the scheme. This means that a person is forced to enroll with more than one insurer at a time and

as a result, it inflates the cost of coverage and at the same time forces the individual to subsidize

on their income so that cuts made go to health insurance premiums.

Senator Sanders made a bold claim that the federal government is well-equipped to

handle health coverage for all its citizens. He was, however, not clear to elaborate on exactly

how that would be made possible. The primary factor that would help drive this idea would be

resource redistribution. This would take into account the current nature of State resources

compared to the population being served. Sanders, Vermont State, would see a reduction of

funds to almost a third of the existing available resources. There would also need to raise taxes,

premiums, and spending just to break even on costs to run the program. In reality, this would

turn out to be a Democrat and Republican war having that some states are doing better than

others. Eventually, politicians will get lost in the debate of how their side is better leaving their

citizens languishing with a program that is not effective or working (Pope).

Medicare has purportedly been a reserve for those without the means to afford the best

healthcare premiums. This has led to the poor quality of service for those enrolled on the scheme

because the institutions that accept the premium tend to have problems of their own. Inadequate

staff, reduced resources, inadequate medication, to mention a few (Badger). This is because they

are mostly funded by the local government through money received from the federal
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government. The effects of this are felt at the grass root level by patients who come expecting

quality healthcare but are not able to receive anything of the sort. Private institutions have also

taken up to charging higher fees and hence find that most of their clientele enroll for higher

premium insurance cover to offset the costs on every perspective.

The impact of Medicare has not been felt since its implementation. According to a survey

by Amy and McKnight it became apparent that there had been no change in healthcare for the

elderly since the program was initiated. Recommendations have been made for the program to be

reformed to give it a better appeal as well as a chance actually to make an impact in society. The

recommendations include: funding of healthcare for people retiring before them getting there by

having it included in taxes; social security and Medicare should have the same approach by

paying it out; and the connection between social security and Medicare should be broken by

lifting conditions (CATO Institute). Changes are needed for the Medicare scheme actually to

work and have people enroll more. The government needs to let go of managing the funding it

gives and allow the people or qualified healthcare professional define the best approach to using

the money.

It is clear that so far Medicare had not accomplished the goals it had when it was

established. People also have too many expectations of their government, and it is failing them at

an alarming rate. Politicians have to put aside their grievances and focus on the welfare of their

citizens and come up with a policy that will be beneficial to everyone. At the end of it all, we

will all benefit from a healthier nation.

Medicare is ineffective at best as has been identified in the sources analyzed. The failure

of the program can be attributed to its limitations, poor policies, and the mismanagement of

funding. People also fail to recognize the need for quality healthcare services and not just to pay
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a minimal price. The government should also step up in offering better services that promote the

health of all the people. Healthcare should be taken up individually, and the government should

be viewed as a facilitator of resources and a conducive environment. Insurance companies can

also collaborate with the Medicare program to give it a boost but still work on remaining

independent by offering affordable services. Medicare is currently in no shape to warrant praise,

but maybe with reforms and serious adjustments in its policies, there could be a change.
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Bibliography

Anderson, David, Jodi L Liu and Mark W. Friedberg. Medicare for All: Sounds Good, but What

Does It Mean? 19 November 2018. 22 March 2019.

<[Link]

[Link]>.

Badger, Doug. The Risks of Medicare for All. 14 December 2018. 22 March 2019.

<[Link]

CATO Institute. Medicare. 2017. 22 MArch 2019. <[Link]

policymakers/cato-handbook-policymakers-8th-edition-2017/medicare>.

Kiley, Jocelyn. Most continue to say ensuring health care coverage is the government's

responsibility. 3 October 2018. 22 March 2019.

<[Link]

health-care-coverage-is-governments-responsibility/>.

Pope, Chris. 'Medicare for All' Would Devastate Bernie's Home State. 5 September 2018. 22

March 2019. <[Link]

[Link]>.
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