Preventative services are one of the primary benefits available to the elderly. Even though Medicare provides excellent benefits, the elderly still spends a large amount of their personal income on out-of-pocket charges for medical services. Medicare works hard to control the cost of health care through structured payment system and regulatory controls. To that end, Medicare is now a leader in developing payment systems that have been adopted by other health care payers. Medicare has experienced tremendous success in its payment for hospital and medical services. Medicare is a government entity and is not able to negotiate or set the price for pharmaceutical.
Due the rising cost of health new strategies are to the help the elderly save for medical expenses prior to retirement. To that end it is suggested that the elderly contribute to a personal Medicare Health Account. Monies contributed to this account would be used to cover premiums, out-of-pocket medical expenses, and long-term care. Coordination of care is a concern for the elderly and something that Medicare needs to improve. Coordination of care is important to the elderly because they multiple chronic illnesses that must be treated by several health care providers. To address this issue Medicare will need to be restructured to cover transitional care services.
Davis K, & Collins S. (2005-2006). Medicare at 40. Health Care Financing Review 27(2):53-62. Moon M. (2006). Medicare: A Policy Primer. Baltimore, MD: Urban Institute Press.