JustCare

Tag: Costs

  • Americans more likely to go without needed care and to struggle to pay for care than people in other wealthy nations

    Americans more likely to go without needed care and to struggle to pay for care than people in other wealthy nations

    More than one in three adult Americans (37 percent) surveyed by the Commonwealth Fund in 2013 report skipping care because of the cost. And, more than four in ten Americans (41 percent)—a greater percentage than in any of the other ten countries surveyed–reported spending at least $1,000 out-of-pocket for their care. Almost one in four of them (23 percent) could not afford to pay their medical bills or struggled to pay for care.

    Time will tell to what extent these percentages drop as a result of the Affordable Care Act.  For sure, health care remains prohibitively expensive in the U.S. even for those with insurance.

  • The cost of cancer drugs: It could bankrupt you

    The cost of cancer drugs: It could bankrupt you

    If you want to understand the power of the pharmaceutical industry to gouge Americans and, in particular, to force Americans with cancer into bankruptcy, you should watch this 60 Minutes piece that aired on October 5, 2014.
  • How well do you understand the problem with health care costs?

    How well do you understand the problem with health care costs?

    Let Josh Sundquist explain four shocking facts about the problem with health care costs in his own delightful way. 
  • Medicare Advantage plans are a bad deal for taxpayers

    Medicare Advantage plans are a bad deal for taxpayers

    Two recent reports on Medicare Advantage plan billing practices reveal that Medicare Advantage plans are a bad deal for taxpayers. A number of them are bilking taxpayers of billions of dollars. A new study by the Department of Health and Human Services shows that some Medicare Advantage plans are “upcoding” or, in English, charging Medicare for more costly services than they are providing. Because Medicare pays Medicare Advantage plans more to treat patients who are sicker, some of them charge Medicare as if their patients are in worse health than they actually are.

    Another study by the Center on Public Integrity determined that “billing errors” by Medicare Advantage plans led the government to overpay them nearly $70 billion between 2008 and 2013.  Not surprisingly, in many parts of the country, the cost of caring for people with Medicare through these private plans is as much as 25% more than traditional Medicare. Of note, a large number of Medicare Advantage plans have not succeeded at controlling Medicare spending, as many lawmakers had suggested they would when they were first created in 2003.

    Here’s more from Just Care:

  • Are you spending as much on health care as you are on food?

    Are you spending as much on health care as you are on food?

    If you have Medicare, you might just be spending as much on health care as you are on food: health care is typically 13.9% of household spending.As you age, watch out. Your healthcare costs can eat up a huge portion of your total household spending.

    Healthcare spending often represents a large share of overall household spending, particularly for older adults with Medicare, living on fixed incomes, who need significant amounts of care.  For sure, you spend a larger portion of your income on health care as you age and as your income decreases.  And, of course, the more health care you need, especially if you need long-term care, the more likely a greater portion of your income goes to health care.

    Household spending on health care is significantly higher on average for people with Medicare. As of 2012, the typical Medicare household has a lower income, $33,993, and higher health care costs than younger household’s income, $53,000. In 2012 Medicare households spent 13.9% of their total household spending on healthcare costs, $4722, whereas non-Medicare households spent closer to 5%, $2722.

    So, what do people spend their health care dollars on? Mostly they are paying a lot for health insurance, such as premiums and coinsurance payments. Premiums alone typically account for two-thirds of total spending for people with Medicare, a yearly average of $3088. Other out-of-pocket costs include an average of $873 for medical services, $613 for prescription drugs, and $149 for medical supplies. The share of healthcare costs mirrors the cost of food and transportation for Medicare households.

    Click here to read more from Kaiser Family Foundation.

  • Medicare prescription drug costs falling

    Medicare prescription drug costs falling

    Medicare prescription drug costs are falling. Drug spending has dropped significantly, largely because of a loss of patent protection for several commonly used high-cost drugs and fewer than projected brand-name drugs being introduced into the market.
    A new report from the Congressional Budget Office further explains that far fewer people have enrolled in Part D than originally projected.  As a result, Medicare drug spending in 2013 was $50 billion, about half of what the CBO projected in 2003.In 2013, there were 39 million enrollees in the Part D drug program, 12 percent fewer than projected ten years before.

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    For CMS data on Medicare drug spending in 2013, click here.

  • Why does my healthcare cost so much?

    Why does my healthcare cost so much?

    Why does your healthcare cost so much?  First, it’s because every procedure costs more in the United States than in other countries.

  • Should you pay more for Medicare than you do now?

    Should you pay more for Medicare than you do now?

    Raising Medicare premiums will save the government money but could hurt millions of people with Medicare.
    Lawmakers are looking for ways to cut down government spending on Medicare.  Many of them are proposing that more people with Medicare pay a higher monthly premium. According to the Kaiser Family Foundation, if federal law changes, many people with Medicare will pay a lot more each month for their health care.

    Today, only a small percentage of people with Medicare pay higher premiums for their medical care (5 percent) and for their drug coverage (4 percent). That’s because right now, only people who earn $85,000 or more and couples who earn $170,000 or more pay higher premiums.  Today, you might be surprised to know that half of all people with Medicare have incomes below $23,500 and one in four have incomes below $14,400.

    If the new proposals became law, one in four people with Medicare (25 percent) would pay higher premiums for their medical care by 2036, starting at incomes of $45,600 for individuals and $91,300 for couples. The Congressional Budget Office estimates that this change would cut federal spending by $56.3 billion dollars in the next ten years starting in 2014.

    Asking middle-class Americans to pay more for Medicare than they do today may mean forcing them to go without needed care.  People with incomes as low as $45,600 are at risk of not being able to pay these higher premiums, especially if they must spend a lot on health care that Medicare does not cover.  Even today, if they have high health care costs or other costly needs, they often struggle to afford care that Medicare does not cover.

    Click here to read the full article.

  • Medicare costs expected to be less than originally projected

    Medicare costs expected to be less than originally projected

    According to an analysis of new Congressional Budget Office data by the Kaiser Family Foundation, Medicare is expected to spend an average of $1,000 less this year than originally projected on each person with Medicare, $11,328.  That’s a total of $50 billion less in 2014.

    By 2019, projected reductions in Medicare spending are expected to be an average of $2,400 for each person with Medicare, $12,545, down from a projection of $14,319.  That means Medicare’s total costs will be $120 billion less than what the budget folks in Washington expected.

    It’s still hard to know exactly why Medicare is seeing lower costs than originally expected but there are some theories.  For one, unnecessary hospital readmissions are dropping.  Health care reform incentivized hospitals to ensure Medicare patients get appropriate care when they are first hospitalized. If they need to be readmitted because of inappropriate care received on their first visit, hospitals are penalized financially.