12. March 2008 by Jon Moss.

In late 2006, the AARP completed a survey in which it was reported that nearly 60% of older Americans (age 45 and older) underestimate the cost of long-term care, overestimate the long-term care costs that Medicare and Medicaid will pay and misunderstood the specifics and scope of the services they will receive as part of a public program.

 The AARP results are troubling to many community and insurance industry leaders.  If people mistakenly believe that public programs will step in and cover long-term care, they won’t make arrangements for private care–and they may end up with no long-term care at all.

In a recent blog post, Rep Dan L. Burton, R-Indiana, called the AARP report findings “shocking,” and he encouraged future legislative change to help educate the public about long-term care policies and coverage options.

“With only 10% of seniors currently covered under private long-term care insurance policices to help cover long-term costs, the average cost of a private room in a nursing home running about $75,000 a year, and our nation’s baby boom generation beginning to retire, we are literally facing a huge health care train wreck,” Burton warns.

According to the U.S. Department of Health and Humana Services, the number of recipients age 65 or older in need of long-term care may increase to 12 million by the year 2020.

Posted in Medicare, long-term care | 1 Comment »

27. February 2008 by Jon Moss.

A new study, released today by the National Association for Insurance Commissioners (NAIC), indicates that although 84 percent of baby boomers say access to health insurance is important when choosing a retirement date, 64 percent do not have a comprehensive understanding of their Medicare eligibility.

Only 36 percent of the 377 boomers surveyed — all born between 1946 and 1964 — say they knew that Medicare eligibility begins at age 65, 21 percent thought Medicare coverage began at age 62, and 9 percent said age 67.

Additionally, 6 percent think the eligibility age for Medicare is 59 ½ and 28 percent say they are unsure of the age, according to findings.

According to the NAIC, only 43 percent of respondents say Medicare eligibility is an important factor in determining when they will retire, but 48 percent expect to use Medicare to cover their health care needs in retirement.

Researchers conclude that many baby boomers are unclear about access and eligibility to Medicare and could be missing out on benefits that have already qualified for.

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19. February 2008 by Jon Moss.

Over five years, Tennessee hospitals would feel $2.5 billion worth of President George Bush’s $196 billion proposed cuts to Medicare and Medicaid should his budget pass without change.

According to numbers from the Tennessee Hospital Association, the impact would be first felt in 2009 to the tune of $215.3 million. Health and Human Services Secretary Michael Leavitt said last week that Medicare will go broke in 11 years if nothing is done.

“We don’t believe the cuts will be accepted very well in Congress so we’re not doing a full court press right now,” says David McClure, THA’s vice president of finance. “We’re not asking our members to contact their legislators until this thing moves a little further down the road.”

McClure says if the cuts aren’t approved, he’s still afraid they can be used as a blueprint for future budgets to help balance Medicare’s budget or use the cuts to pay for other government functions like the war or to stimulate the economy.

Posted in Medicare, health insurance reform, medical | No Comments »