Medicare Program in the US - Essay Example

Medicare is an essential federal program that provides financial protection to the elderly. In the U.S., about 46.9 million Americans are dependent on Medicare services (Tierney 2014). The program was passed into law as Title XVIII of the Social Security Act of 1965.

The Patient Protection and Affordable Care Act of 2010(ACA) contributed to changes in the Medicare program. This Act involves a series of provisions to control healthcare costs. The Act consists of provisions such as minimum standards regarding health insurance policies, health insurance exchanges, and federal subsidies for low-income families. One of the major problems regarding the Medicare program is the need to continue providing the health insurance required by seniors and persons with disabilities at the same time as trying to contain costs (Tierney 2014). Through the ACA the government has been able to significantly reduce healthcare spending. One particular example is the reduction in private health plans and payment reductions to Medicare Advantage (Gitterman & Scott 2011). Gitterman and Scott observe that the ACA will save the government a net $428 billion in Medicare spending over the first ten years, whereas, annual Medicare spending will expand to about 5.5 per- cent, instead of 6.8 percent(2011). Secondly, ACA recommends a reduction in annual payment updates for hospitals, and rehabilitation facilities among other health care providers.

The increased access to Medicare positively impacts the baby boom generation. Through increased Medicare coverage, baby boomers are more likely to enjoy healthcare services whenever and wherever they need them. Consequentially, due to the increased access to Medicare, baby boomers are more likely to live longer. However, the baby boom generation creates a serious strain on healthcare. According to Wolf, the baby boom generation creates a healthcare explosion in the population of seniors. This significant generation of seniors will bring a tsunami of spending associated with the Medicare program (Wolf 2010). Inevitably, the significant number of Medicare beneficiaries will result in the rise of healthcare costs that would outpace inflation (Wolf 2010). Moreover, as medical advances extend the lives of baby boomers, Medicare finances are continually being strained. According to Wolf, Medicare is expected to cost $929 billion by 2020 which is an 80% increase in 10 years (Wolf 2010).

Through technological advancements, the cost of Medicare can be significantly reduced. Scientists are constantly looking for technologies that would ensure patient safety, minimize economic consequences, and facilitate long-term outcomes. Currently, there have been a series of technological advancements in healthcare. One particular example is the use of stem cell technology for the treatment of diseases. The use of stem cell technology enables the treatment of severe diseases that can lead to death. The second technology is the adoption of healthcare software and mobile applications. This technology facilitated the effective delivery of medicine around the world. Moreover, it enabled healthcare members to share effectively and organize information (Healthguide 2011). Read More