Does Medicare Actually Need Supplements?

This is a great question that has been raised by some lawmakers.  There are several reasons for this idea.

With Health Care Reform such a big issue in the United States, and with lawmakers working to come up with solutions to Medicare problems, there are varied ideas regarding how to work things out so that Medicare is actually doing what it should to support the people depend upon it.  With many of the issues at hand, it is important that all options regarding Medicare and Medicare Supplements be explored.

One issue that has been raised is that Medicare – if developed and run effectively – would not need supplemental policies.  Blake Cummings, who is running for Oklahoma’s U. S.  Representative District 4 seat, has stated that Medicare needs to be “shored up.”  He is not alone in that opinion.  Lawmakers have been working to fix Medicare for years.  There have been many suggestions as to how to do this effectively.

One of the ideas that has come out of some of the Medicare reform efforts to date has been Medicare Advantage, which has addressed some Medicare beneficiaries’ prescription drug needs.  There are other Medicare Supplemental Policies that have been expanded and changed, as well.

The problem is that the Medicare Advantage policy has a “donut hole” which is a financial hole that a senior can fall into and not be able to get back out of.  Basically, it is the point at which prescription drug benefits stop and the senior has to start paying out of their pocket for medication.  It could cost a senior more money than they can afford, thus, putting them in a position where they might have to go without essential medicine.

Cummings says that when a person reaches retirement they should be enrolled in a single payer plan that will cover them for their medical needs without supplements or other coverage.  With all the confusion about Medicare coverage and the supplements that are available, moving to a single plan might not be a bad idea.  After all, wouldn’t that eliminate some of that confusion, and just as importantly, wouldn’t it eliminate much of the cost both to the system and to the beneficiaries? 

This is a good question.  Hopefully Cummings will continue to explore the idea and others will explore it with him.