Is your leadership discussing the implications of the current economy and the new healthcare legislation and the increasing Medicare population on your organization and budgetary planning?
The
world seems to be heading to a massive financial turmoil. The current economic
trend doesn’t have the resources to pull itself to a better platform. It’s not
just one country that is undergoing severe economic crisis, but almost every nation
has its own share of problems.
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The
Euro crisis, coupled with the sliding US economy has led the world to believe
that it is again heading closer to the experiences of the Great Depression Era.
The US economy in particular, has been under a scanner, where steady rise in fuel
prices and the lowering of interest rates by the Federal Reserve has put the
nation in a spot of trouble.
To
make matters worse, the new health care legislation has driven employers to safeguard
their employees, further more than what they have already being doing. In a
much debated move, the Obama Administration had passed the law, where it says
that employers with more than 50 employees are required to provide certain
health insurance coverage for all its employees. If not, it could mean penalties
for employers.
The
US government has decided to postpone the implementation of the bill till the
year 2015 after sections of the private sector had opposed the legislation
vehemently. More than the health cover, it is perhaps, the reporting norms that
have said to disturb the business establishments more. The 21 page health application
is spilling more fire into the debate, and the mood swings changing in the
government set-up. They finally seem to have brought more sense to the whole argument
by reducing the application format to just three pages.
At
a time when companies are charged up to find a solution to meet higher health
care costs, the question now is whether the new health care legislation will solve
budgetary upheaval. And how will it help the economy?
Experts believe that
there could be a significant decrease in hiring by firms. Companies feel that
the decision by the government to come up with the new health care legislation
will somehow affect their performance, especially, the not so large companies.
They are now in a spot, whether to spread the work load in the existing set up,
or hire new ones. Some companies will surely not look to add on the rolls,
unless necessary.
Was it necessary for
the administration to pass the bill, when the country is already facing difficulties
in the economic front? Companies are also finding hard to come to grips with the
affect new health legislation will have on Medicare.
The growing Medicare
population is set to benefit the entire health care system. The Medicare, which
was primarily set up to introduce new cardiac technologies faster, has indeed
got standout benefits. Many countries don’t give ample significance to Medicare
program, unlike in the United States, where it remains the key health insurance
provider.
Everyone believes that the
growing Medicare population will ultimately keep the health care cost in check.
Not just that, but it has also enabled the inclusion of extremely expensive
cardiac technologies into hospitals. Medicare has made health care affordable
in many respects. It has brought those with smaller income level to believe
that they are protected by insurance.
The fear, which now
gets into the minds of the people, is the fact that the new health care
legislation will lead to cuts in Medicare. However, if one looks at the new
health care legislation carefully, the government has made attempts to bring
greater health care benefits under one umbrella. The Obama administration has
promised to reduce Medicare costs at least for those who do not fall in the category
of seniors, and this new health legislation is a step to endorse its long drawn
promise.
Companies will now have
to make few sacrifices to accommodate the new bill. To drop out hiring as an
option is not a wise decision. Companies should take measures to assign the
work load carefully. They should also understand that the current bill will certainly
go a long way to ease out the financial pressure faced by low income group in
their firm. The economy will certainly stand to gain in the long run as the
federal budget won’t be under the heat as it is now.
How companies perceive
at the whole scenario, is instrumental in its growth? What they need to be
convinced and convince others is that the Medicare benefits may not be
strikingly evident, but has been packed with elements such as providing
extended preventive care and reduction in the cost of prescription drugs in the
new affordable insurance program. The employees will remain secure without
worrying about the health care. The companies can take advantage from the
knowledge of a secured health care system under the new affordable health
insurance.
The new program will
also help the Hospital Insurance Trust Fund to remain flush. The Hospital Trust
Fund that pays for hospital expenses on behalf of Medicare beneficiaries is
predicted to grow insolvent within the next four years, and; therefore, a
timely intervention was required. The current affordable insurance program clearly
will help the fund stay afloat for many more years, and also help improve the
economy as a whole. The implementation of the new legislation will indeed support
Medicare beneficiaries, and in the long run might be looked upon as an economy
boosting measure.
By Rajiv Sighamony
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