Medicare Solutions Blog » health care

Americans Spending on Alternative Medicine

Sophie Callahan — Fri, 31 Jul 2009 14:39:12 +0000

The National Institutes of Health (NIH) recently announced that Americans spent $33.9 billion on complementary and alternative medicines in 2007. These results come from a study which surveyed more than 70,000 across America and inquired into 36 forms of alternative medicine. These findings suggest that Americans spend more than 10% of their out-of-pocket health care dollars on alternative medicines and services which include chiropractors, acupuncturists, massage therapists and herbal remedies.

The usefulness and effectiveness of these alternative medicines isn’t always evident. Some of them are promising, but others could be more harmful than helpful to your health. About half of the people who used alternative medicine do so because they cannot afford conventional care. This includes a significant amount of senior citizens who chose to turn to alternative medicine once they hit the Medicare gap and can no longer afford conventional alternatives. One report found that over one-third of adults use some form of alternative medicine.

The main reason behind why people tried alternative therapies like chiropractic care and massages was for pain. The most popular supplements used were glucosamine (which is supposed to reduce joint pain) and fish oil (which is supposed to reduce the risk of heart disease).

Although not all alternative medicine is covered by health insurance, it was found that about 43 percent of alternative medicine in 2007 was paid for by private insurance and about 31 percent was paid for by public insurance. The remainder was paid by the patients.

Medicare Bankrupt in 2017, Social Security in 2037

Mona Lisa Vito — Thu, 28 May 2009 16:00:02 +0000

Advisers to the Obama administration announced this month that the economic crisis has put both Medicare and Social Security on the fast track to bankruptcy. Economists predicted more than a decade ago that Medicare and Social Security would face bankruptcy in the near future, but reports issued by the government show that both programs – the primary health care and income sources for millions of retirees – have felt the effects of the economic downturn and will be running out sooner than expected. Treasury Secretary Timothy Geithner projected that Medicare will run out of money in 2017, followed by Social Security in 2037.

Though market conditions now appear to be stabilizing, many forty-somethings and younger find themselves questioning whether either program will exist when they retire and are planning for worst-case scenario. Financial advisers are trying to address the most immediate of these concerns, Medicare, by helping clients arrange ways to self-fund their healthcare after retirement. They are encouraging those under fifty to be more conservative in their spending during their remaining working years and to establish larger cash reserves to cover unanticipated healthcare costs in their elder years. Few think that Medicare will ever completely disappear, rather it will probably assume some other form as it would be political suicide for any elected official to allow the system to fail.

This kind of uncertainty has led many to prepare for health expenses during retirement differently. For a married couple retiring in 2009, the total medical costs during retirement (beyond Medicare) would average around $240,000 according to Fidelity Investments. Some people are saving for these kinds of expenses through health savings accounts, which function like a 401(k) for health care costs. It is tax-free to withdraw the money for medical costs, and if these costs end up being less than anticipated, the remainder acts like an ordinary retirement account.

Medicare: A Senior Scam

Sophie Callahan — Fri, 22 May 2009 19:16:09 +0000

Some people claim that the federal government is ripping off young people by making them pay for Medicare used by senior citizens. Retirees can benefit from the cheap health care whether they are dirt poor or filthy rich and it is young, working people who pay to give seniors those health benefits.
Spending such large amounts of mone to help retired senior citizens who no longer substantially contribute to our economy is illogical in the minds of many economists. The government spends about 6x more money on seniors than it spends on children. However, it is the children who can actually make an impact on the United States’ future, whereas retired seniors are done contributing to the economy.
Although seniors have paid their dues while being productive, working citizens in some respects, the average Medicare recipient actually collects two or three times more money than they paid in the first place. Medicare currently has $34 trillion unfunded liability which future generations will have to pay for.
As an increasing amount of people from the baby boomer generation retire and qualify for Medicare, young people will need to pay an increasing amount of money to care for the elderly. This could lead to the bankruptcy of Medicare. If that happens, the people who are currently helping seniors pay for their medicines and health care may not have that same privilege.

Kansas Governor nominated for Secretary of Health and Human Services

Annie Finneran — Tue, 03 Mar 2009 19:49:08 +0000

Kansas Governor Kathleen Sebelius was introduced yesterday by President Barack Obama as his nominee for Secretary of Health and Human Services. As a Democrat in a Republican-dominated state, Sebelius has been frustrated in her attempts to expand health care coverage in Kansas. She has tried twice to raise Kansas’s cigarette tax to expand medical coverage and both times had been let down by Republic legislators, who objected to the tax increases.

Kathleen Sebelius is currently serving as the 44^th Governor of Kansas and the second female governor of Kansas. She was first elected to the Kansas House of Representatives back in 1986 and left the House in 1994 to run for state insurance commissioner. She was elected to the position of Governor in 2002 and was reelected again in 2006. She has been named one of the best governors in America according to Time Magazine in 2005 for eliminating the $1.1 billion debt she had inherited when elected to governor.

Senator Max Baucus of Montana says, “I’m particularly pleased to hear of her selection because she brings such solid experience to the position. Passing comprehensive health-care reform is an absolute imperative this year, and as a former insurance commissioner, Governor Sebelius really gets what needs to be done.”

As the Secretary of Health and Human Services, Sebelius will take charge of an agency with 65,000 employees responsible for the public health, food safety, scientific research, and the administration of the Medicare and Medicaid programs of 90 million Americans.