The Elderly

8 Problems with Our Health Care System #4

The elderly are a special problem within our health care system. In the early days of health care insurance, the companies wouldn't allow most retirees to keep their benefits. Because they needed more care, they had more problems buying insurance. If they could get it, it was expensive and wouldn't cover much. The problem was so bad that in 1961, only 7% of the cost of medical care for the elderly was covered by insurance.

The solution was Medicare and it was a success for seniors right from the start. The standard of living for many seniors was raised instantly. There were problems as many medical professionals and hospitals raised their rates and cashed in. Reformers would eventually implement price controls which contained the cost. In fact, Medicare would soon deliver health care more efficiently than most private insurers. Needless to say, most of the elderly were happy with the benefit.

Over the years though, Medicare would fall behind the times in the types of coverage offered. In particular, Medicare lacked outpatient care and prescription drugs. Over the years, more and more seniors began spending more out of pocket for their medical needs. Still, there was no major expansion of Medicare, excepting a brief flirtation with catastrophic coverage that was abandoned after less than a year. During this time, doctors were prescribing more and more drugs and almost every senior became dependent upon at least one prescription.

For those few seniors who were fortunate enough to get Medicare supplementary insurance thanks to their former employers (and the unions who bargained for the care), they would also get bad news. Company after company would abandon their commitment to provide insurance for their retirees. As a result, many seniors began to go without medical care. Some would even give up their homes so they could keep try and keep their medical care. Once again, there was a crisis with health care for the elderly. Would the country step up to the plate?

The first attempt at help, the Medicare Drug Benefit introduced in 2003, requires a post of its own.

Source - Sick: The Untold Story of America's Health Care Crisis --- and the People Who Pay the Price by Jonathan Cohn