If you are pessimistic that there is no hope of reducing the cost of health care, you need to do a re-think. A new bidding system has been put in place to reduce the waste in Medicare and the resolve to help seniors for many years.
This decision will reduce the cost of common medical equipment and supplies to a level that will help seniors get the care they need to remain in the comfort of their residence, such as wheelchairs, diabetic supplies, and equipment for oxygen. According to several government reports, a paid system, used by Medicare, is often exposed to fraud.
Can Medicare Reduce Third Party Spending at National Level?
A brand new nationwide supply system many believed will lower the cost of Medicare by an average of 32%. It is also expected that the average economy in places like Florida will be much higher. The accrued savings can be helpful for taxpayers and senior citizens.
Here’s an example of reduction in cost: The cost of an oxygen equipment in Florida is around $ 173.17 a month. This could fall to about $112 per month. Early the following year, 9 Florida recreation areas must participate in the new system. Although this system is spreading across the country, it is estimated that it will save about $ 17 billion in ten years, according to Jonathan Blum, Medicare deputy administrator.
Will additional Medicare plans change?
These and similar savings took off in 2011, with the exception of efforts to close the new supply system. The US representative at the time, Kendrick Meek, tried to end the new system, but without much success.
With such drastic cuts in the cost of medical equipment and consumables, the Medicare supplement business may be forced by the public and the government to either lower premiums or extend the benefits of the plan. If Medicare supplement coverage spends less, why not transfer at least part of the savings to senior citizens?
This already required a variety of medical equipment and devices, as well as contracts for service centers for Medicaid and Medicare. The last conclusion was done in September, so it took a while to know whether the new system will lower cost or improve the rewards of Medicare supplemental plan.
In addition, it is possible that uncompromised companies can lobby Congress to obstruct the system. This seems to be a long story with Medicare already empty. This unprecedented bidding system, the new health care reform and the aging of the American population over the next few years will have repercussions on Medicare supplement insurance. One way to stay that way and ensure you have extended coverage and/or less costs is to ask for an annual review of these plans.
In the long run, it’s worth taking a look while your health facilitates plan change. It is almost impossible to go to different levels if your health condition worsens. Do a comparison of new plans when they arrive on the market regularly and you are more likely to find better values and save more in your hard-earned retirement savings.