American Health Insurance Plans (AHIP) is the organization that allows millions of Americans to obtain access to healthcare benefits, services, and treatments. AHIP aims to improve the healthcare system and make insurance more available, cheap, and of appropriate quality for everyone (National Health Council, 2021). A Medicare Buy-In program is a great initiative that would emphasize increasing coverage for lowering the cost of insurance for persons between the ages of 50 and 64 with either no insurance or significant medical expenses. The AHIP perceives the Medicare Buy-In policy for adults aged 50 and older as a way to improve the quality of life for millions of adults nationwide, as well as decrease the spending of government.
When it comes to the healthcare system, there should always be beneficial sides, with no entities being harmed by the new regulations. I believe that a Medicare Buy-In program can be advantageous in terms of social and governmental influence. While there are many initiatives aimed at healthcare support, a Medicare Buy-In policy can be among the most effective programs with maximum impact and fewer shortcomings.
Firstly, as of now, especially during the times of global epidemics, older individuals are significantly more vulnerable to bigger expenditures. Additionally, it should be noted that as people grow older, it becomes more likely that they will need to spend more money on medicine. Around the age of 65, more than 20% of individuals have medical expenses that surpass $10,000, and more than 15% have medical expenses that exceed $15,000 (Bowen, 2021). Therefore, older individuals have a significant risk of incurring excessive medical expenses.
Many senior citizens would not be able to afford the high treatment expenses without the financial security provided by health coverage. Out-of-pocket thresholds are a characteristic of the health insurance plans offered in the ACA Marketplaces that safeguard members financially by reducing the price they are required to pay (Bowen, 2021). These out-of-pocket thresholds may also be a part of Medicare Buy-In programs, based on how they are constructed. If these thresholds are offered by Medicare Buy-In policies, they could be less than those of a standard ACA silver plan (Bowen, 2021). Consequently, it is beneficial for the government since it increases the overall wellness of the nation, and it increases the accessibility to healthcare and availability of healthcare services as well. At this stage, “political will is essential” (University Name, p.13). The role of the government is to protect citizens and control costs in healthcare, which can be achieved via the Medicare Buy-In policy.
Secondly, the Medicare Buy-In policy can have a positive influence on government spending. In this sense, buy-in initiatives can dramatically reduce expenditures on healthcare at a little expense to the authorities and the government by paying providers at generally lower Medicare reimbursement rates. The baseline buy-in strategy would net lower total healthcare costs by almost $2 billion (or around 0.1 percent) (Bowen, 2021). This represents a net reduction in expenditure of almost $3 billion (-0.3%) for older persons, made possible by the reduced reimbursement rates (Bowen, 2021). Moreover, there will be an increase in funding of around $1.1 billion (-0.1%) for those under the age of 50, made possible by the little increase in Marketplace premiums (Bowen, 2021). Since additional spending on buy-in tax incentives would be nearly entirely balanced by decreased spending on Marketplace tax incentives, there would be a very minimal shift in government expenditures. The buy-in policy is, therefore, one strategy for lowering total health care costs.
Hence, it is undeniable that there are vulnerable groups nationwide that require support. At this stage, the Medicare Buy-In policy for adults aged 50 and older, aimed at making the healthcare services more accessible, is one way of improving national wellness. On the one hand, it supports those with no insurance or significant medical expenses. On the other hand, it helps the government reduce expenditures on healthcare by paying providers at generally lower Medicare reimbursement rates. Thus, there is an opportunity to help those who need it the most that can be beneficial for several parties.
References
Bowen, G. (2021). Rationalizing a Medicare Buy-In policy for adults ages 50 to 64 that builds on the ACA. Urban Institute.
National Health Council. (2021). America’s Health Insurance Plans. Web.
University Name. (date). Lesson 1.1: Policy making.