The following two charts are some useful medicare comps. The first shows the change in Medicare Pars A, B, and D from 2006 to 2007 looking at the annual rates of increase net of inflation in the expenditures. Notice that the total shows a great increase since the drug plan was introduced and cost $47 Billion! Clearly this was a massive increase in benefits and one that was never anticipated in the original plan and one never planned for with contributions to the insurance plan itself.
The addition of Part D was not carefully analyzed and has caused the greatest rate of increase in Medicare. The Physician increase is larger than the hospital part and this is substantial. One can look at later years and see the projected increases in Physician payments would be reduced net of inflation and population growth. The hospital rates are still a concern however.
The second chart shows the rate of increase on 2007 alone for these same three areas but now comparing Medicare and Non Medicare. The comparison between these two is interesting since Medicare in this period paid Physicians more than did non Medicare plans.
All of this begs the question we have been asking which is how does one control costs. We believe that just capping rates is like putting a bandage over a melanoma! It still will kill you. You must understand the problem and remove it in its totality. The removal demands an understanding of the root cause which has not yer been addressed.
The addition of Part D was not carefully analyzed and has caused the greatest rate of increase in Medicare. The Physician increase is larger than the hospital part and this is substantial. One can look at later years and see the projected increases in Physician payments would be reduced net of inflation and population growth. The hospital rates are still a concern however.
The second chart shows the rate of increase on 2007 alone for these same three areas but now comparing Medicare and Non Medicare. The comparison between these two is interesting since Medicare in this period paid Physicians more than did non Medicare plans.
All of this begs the question we have been asking which is how does one control costs. We believe that just capping rates is like putting a bandage over a melanoma! It still will kill you. You must understand the problem and remove it in its totality. The removal demands an understanding of the root cause which has not yer been addressed.
Posts
