Nursing facilities are staffed by lower skilled, less trained nursing assistance that are paid lower wages, have increased responsibilities and are often from ethic or minorities (Wiener & Tilly, 2002). In addition, nursing and rehab facilities do not have the capacity to care for the increase population. As a result, over the past seven years more than 70 Certificate-of-Need applications have been approved and more than $300 million will be spent for new or remodeled construction of skilled/nursing facilities (Greene, 2014). Although there is an expansion is facilities, the next question is the cost to Medicare. The baby boomer generation will transgress from acute-care hospital to sub-acute or skilled care facilities where the average cost is $84,000 per year but could exceed $100,000 and Medicare pays 43 percent of the cost for an approximately total of $144 billion (Greene, 2014). As the number of eligible patients increase the burden on the system to pay for services must be reviewed. Currently providers are paid on a fee-for-service where they treat a symptom and receive payment, …show more content…
The projected growth to provide services will jump from 6.8 percent of the GDP in 2000 to 13.2 percent of the GDP by 2050, yet the number of workers contributing to the system will decline (Wiener & Tilly, 2002). This will leave America with a deficit in financing the future cost of healthcare. There are few ways I would propose to change the model to ensure its future. One I would change the eligibility requirements to limit access to those who do not have additional health care coverage, require long-term insurance coverage and ensure correct claims payment. Currently, Medicare allows an individual to utilize Medicare at age 65, if they or their spouse, have meet the number of quarters of payroll taxes under the Federal Insurance Contributions Act (FICA). The individual’s additional health insurance is not taken into account, therefore, if they have any additional health coverage they should not be eligible for Medicare coverage. This would eliminate Medicare from paying as a secondary carrier. In addition, requiring individuals to purchase long term care insurance would help reduce the expense. Approximately 16% of all retirees will attempt to have Medicare cover their long-term coverage, while only 14.9% would be willing to sell their home to cover expenses (Salter, Harness & Chatterjee, 2011). Individuals