COOPERATIVE FEDERALISM

MEDICARE Created By: Ellen Gabis, Ryan

Hanrahan, Max Graff, and Sarah Elzey

COOPERATIVE FEDERALISM When state, local, and federal

governments share responsibilities in governing the people. State and federal governments work together in partnership to exercise government authority.

MEDICARE

Established in 1965 Guarantees health insurance for

Americans of age 65 and older or younger people with disabilities

Title XVIII of the Social Security Act Lyndon B. Johnson was the president

when the act was established Over 48 million people are on Medicare

POLITICAL CONTROVERSY The cost of Medicare was very

expensive for the government Many inpatient procedures were

changed to outpatient procedures to lower the cost the government had to pay

Government was forced to slow spending growth

TODAY’S CONTROVERSY In 2012 lawmakers thought that there

should be a higher premium for the wealthy

Raise the eligibility of age when seniors can receive Medicare

Cut the cost by making Medicare more efficient

MEDICARE BEING MODIFIED 1997- Balanced Budget Act- Lower rates

on post acute care area New ways of payment and lower rates of

payment were legislated New goals were set to move away from

a cost-based system and toward one that will provide incentives for “appropriate” levels of care

Resource Based Relative Value Scale has been created for physicians to use to determine level of care

COST OF MEDICARE Federal Government pays for all of the

costs $105 per month per citizen

PARTICIPANTS OF MEDICARE All states do participate Doctors Hospitals Nursing Homes Hospice Programs Assisted Living

MEDICARE BEING PAID FOR Paid through two trust funds of the U.S

Treasury Hospital Insurance Trust Fund

Payroll taxes paid by most employees Supplementary Medical Insurance Trust

FundFunds are authorized through Congress Interests earned on trust fund investments

Total expenditures for year 2011 was $549.1 billion dollars

REQUIREMENTS OF THE CITIZENS TO RECEIVE MEDICARE

Age 65 and older or have increased medical disabilities

Citizen of the United States Have to receive social security Have to go to a physician or hospital

that is associated with Medicare

QUESTIONS How much is the average cost of

Medicare per month? What age do citizens become qualified

for Medicare? Does Federal or State government run

the Medicare Program? Can Medicare participants go to any

physician or hospital that they choose? When was the Medicare Program

established?

ANSWERS $105 dollars per month 65 years old Federal Government No, patients must go to physicians or

hospitals that are associated with the Medicare Program

1965