The “Fiscal Cliff” and What it Means for Medicare

Medicare was established in 1965, providing health insurance for people 65 and older, regardless of income or medical history.  Throughout their working lives, people pay into Medicare based on the assumption that they will have secure health coverage when they retire.

Before Medicare, an estimated 50% of seniors had no health insurance, due to lower incomes and poverty among seniors and the higher premiums charged by private insurers for those over 65.  Since its inception, Medicare has reduced the poverty rate and has helped extend the life expectancy of retirees.  According to Bloomberg News, “Republicans favor a plan to raise the age of eligibility for Medicare from 65 to 67, a move that could save more than $100 billion but have other cost-raising consequences.”

Lawmakers on both sides agree that somehow reining in the cost of Medicare for the elderly and disabled is key to settling the budget problem. In the fiscal cliff negotiations, Obama and politicians of both big business parties claim there is “no money” for Medicare and other social programs. Americans are living longer. Chronic diseases are more common. The cost of medical care is rising in general with more drugs and innovations in treatment available.  Read the entire Bloomberg News Article.

We here at Farr Law Firm, P.C. urge you to plan for these budget cuts. Many seniors what are affected may be eligible for other health-care programs, such as Medicaid.  Call 703-691-1888 and set up a free consultation to learn more.

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.

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