I
nt heUnit
edStates,Medicareisafederals
ociali
nsurance
program t
hatpr
ov i
deshealthinsur
ancetopeopleov erthe
ageof65,indi
vi
dualswhobec ometotal
lyandpermanent l
y
disabl
ed,end-
stagerenaldisease(ESRD)pat i
ent
s,and
peopl
ewi t
hALSorLouGehr i
g’
sdisease.
Rec entresearc hhasf oundt hatt hehealthtrendsofpr ev i
ous lyunins ur
ed
adults,especiall
ythos ewi t
hc hr oni
cheal thproblems ,impr ovesonc et hey
entertheMedi c ar
epr ogr am.Tr adit
ionalMedi car
er equiresc ons i
derable
cost-shari
ng,butni netyper centofMedi careenroll
eeshav es omek indof
supplement alinsur
anc e—ei t
herempl oyer-s
pons oredorr et i
reecov erage,
Medi cai
d,orapr i
vateMedi gappl an—t hatc over
ss omeoral loft
hei r
cost-shari
ng.Wi ths upplement al i
nsurance,Medi car eens uresthatits
enroll
eeshav epr edictable,aff
or dableheal t
hc ar
ec ost
sr egar dl
essof
unforeseeni l
l
nes sori njury
.
Asthepopul ati
onc over
edbyMedi caregrows ,it
sc ost
sarepr oj
ec t
edto
risef
rom sli
ghtlyover3per centofGDPt oov er6percent,contr
ibuti
ng
subst
antiall
ytothefederalbudgetdef i
cit
.In201 1,Medicarewast he
pr
imarypay erforanes ti
mated15. 3mi l
l
ioninpatientst
ays,representi
ng
47.2percent( $182.
7bi l
l
ion)oftotalaggregateinpati
enthospitalcost
sin
theUnitedSt ates.TheAffor
dabl eCareAc ttooks omes t
epst oreduce
Medicarespending,andv ari
ousot herproposalsarec i
rcul
ati
ngt oreduceit.
Medi c arePartDpr ov i
desa Medi careAdv antagepl ansex pandt hehealthinsuranc eoptionsf or
privateins uranceopt i
ont oallow peopl ewi thMedi care.Medi careAdv antagewasc r
eat edundert he
Medi carebenefici
ar i
est o Bal ancedBudgetAc tof1997,wi ththeint
enttobet tercontrolthe
purchas es ubs i
dizedcov eragef or rapidgr owt hinMedi cares pending,aswel lastopr ov i
deMedi c are
thec ostsofpr escr
ipt
iondr ugs.It benef ici
ariesmor echoi ces.Butonav erage,Medi careAdv antage
wasenac t
edaspar tofthe plansc os t12% mor et hant r
adi t
ionalMedicare.TheAf f
ordableCar e
Medic arePr escr
ipt
ionDr ug, Ac ttooks tepst oal i
gnpay ment stoMedi careAdvant ageplanswi th
I
mpr ovement ,andModer nizati
on t
hec ostoft radit
ional Medic are.Ther ei
ss omeev idenc ethat
Actof2003( MMA)andwenti nt o Medi careAdv antagepl anss electpati
entswithlowr iskofincurring
effec tonJ anuary1,2006. maj ormedi calexpens est omax i
mi zeprofi
tsattheex pens eof
t
radi t
ional Medi care.