Improving the lives of older Americans Straight Talk Webinar WELCOME This session will begin promptly at 3:30pm EST Please mute your phone To hear the.

Improving the lives of older Americans

Straight Talk WebinarWELCOME

This session will begin promptly at 3:30pm ESTPlease mute your phone

To hear the audio, please dial 1-866-740-1260 x4796970

The moderator will be on the line shortly


Straight Talk for Seniors:How Will Health Care Reform Change Your Health

Care?

September 2010

© 2009. National Council on AgingA non-profit service and advocacy organization

Improving the lives of older Americans since 1950

National Council on Aging (NCOA)

Enhancing Economic Security

Improving Health

Strengthening Community

Organizations


Our Goal Today

Just the Facts, Ma’am. Just the Facts.


Just the Facts About….

The A-B-C-D’s of Medicare

Health Reform Changes to Medicare Finances

How Health Reform Changes Affect YOU


The ABCD’s of Medicare

1


Medicare is Difficult to Understand!



Part A – Hospital Insurance• Inpatient care,

including skilled nursing

• Paid for by payroll taxes

• Concerns about future solvency



Part B - Outpatient Health Insurance

• Pays for additional medical services (like doctors visits, diagnostic tests, and outpatient care)

• Financed 75% by general revenues, 25% by monthly premiums ($96.40 or $110.50 in 2010)



Part C - Medicare Advantage (MA)

• Private health plans (e.g. HMOs and PPOs) that deliver Medicare services

• 24% of Medicare recipients are in MA

C



Part D - Prescription Drug Coverage• You choose your plan

• Includes a coverage gap for “donut hole”

• Paid for by general revenues 2003 law was not paid

for


The A-B-C-D’s of MedicareMany believe that rate of spending on

Medicare cannot be sustained

3.56.4

2010 2030

Medicare as a Percentage of GDP• Medicare spending is

increasing faster than the rest of the economy.

4679

2010 2030

Millions with Medicare• The number of people

with Medicare will grow rapidly as Boomers age.


Health Reform Changes to Medicare Finances

2


The Basic Math of Medicare Under Health Reform

$7.15 TRILLION = Projected total Medicare spending before health reform (2010 -2019)

$6.75 TRILLION = Projected total Medicare spending after health reform (2010-2019).

-$400 BILLION = Net 10-year reduction in overall Medicare spending due to health reform (from 6.8% average yearly increases to 5.7% yearly increases). Net reduction in per capita spending (after inflation) from 4% to 2% annually

But Remember:+ $500 BILLION = Net 10-year increase in Medicare spending

due to 2003 Medicare prescription drug law (not paid for).


Questions about Health Reform and Medicare

The new law will result in future cuts to your basic Medicare

benefits.

True, False, Don’t Know


Financial Changes to Medicare

Increased Revenues• Higher payroll taxes for wealthy

workers ($200/$250,000)• Higher Part D premiums for 5% of

higher-income Medicare beneficiaries ($85/$170,000)

Reduced Spending• Slower growth in payments to

providers (not doctors)• Reduction in over-payments to

Medicare Advantage plans• Average yearly Medicare spending

increases down from 6.8% to 5.7 % overall or from 4% to 2% per person


Health Reform Financial Changes to Medicare

Medicare solvency extended for 12 more years

Increased funding to improve some Medicare benefits


What About the Federal Budget Deficit?

!Congressional Budget Offices estimates

health reform will save $124 billion over 10 years.


How Health Reform Changes Affect You

3


Questions about Health Reform and Medicare

The health care reform law will cut Medicare payments to doctors.

True, False, Don’t Know


How These Changes Affect YOU

Changes in Doctor Payments

The law provides a 10% bonus for primary care doctors

The law did not address the long-standing problem of future cuts in doctor fees, which has been a problem for more than 10 years, but that Congress consistently delays in separate bills.



Improvements in Medicare Prescription Drug Coverage

• $250 Rebate Check for those who hit donut hole

• 2011: 50% discounts on brand name Rx

• 2020: Coverage gap completely closed



Better Preventive Care

• Free annual wellness visit and prevention plan

• No more cost sharing – most preventive benefits free

• More funding for prevention services



New quality improvements Pilot projects and

demonstrations to test better coordination among doctors, specialists, other providers

Incentives to reduce hospital readmissions

Help so you can manage your own care

Better Chronic Care



Other ImprovementsIncentive to companies to help keep premiums down for early retirees

New protections against elder abuse, neglect, financial exploitation

Better training for workers caring for seniors

Nursing home quality improvements

+



Greater Access to Medicaid Home and Community Long-Term Care Services• Help to stay at home – if your state

adopts these important options

• Financial protections for spouses

• Program to leave nursing homes

• Voluntary public long-term care insurance program for full and part-time workers (CLASS)



What about Medicare

Advantage Plans?


Question on Health Reform and Medicare Advantage

Under the new health reform law, the Medicare Advantage (MA) program will be eliminated. • True, False, Don’t Know


Question on Health Reform and Medicare Advantage

Under the new health reform law, Medicare Advantage plans will

cut benefits and increase premiums.

• True, False, Don’t Know


Reduced Payments to Medicare Advantage Plans

MA plans are paid about $1,100 more per person than people in original Medicare (13% higher)

Payments frozen in 2011

Beginning in 2012, these overpayments will be gradually reduced



Changes in Medicare Advantage (MA) Plans?

•Some plans may eventually reduce extra benefits, increase premiums or even leave the program

•New bonuses to reward high quality care

•New consumer protections to limit out-of-pocket costs


If you have a Medicare Advantage plan

1. Don’t panic, but get informed.

2. Shop around – research your options at www.MyMedicareMatters.org.

3. Learn if you are eligible for Medicare Savings Programs, Extra Help for Prescription Drugs and/or other benefits (go to www.benefitscheckup.org).

4. You can always return to Original Medicare.


How Health Reform Affects Your Children and Grandchildren

• Children up to age 26 will be covered under their parent’s policies (2010)

• No one will be denied coverage because of pre-existing conditions or dropped because they get sick (2011)

Insurance Protections


How Health Reform Affects Your Children and Grandchildren

•CBO estimates that 32 million currently uninsured Americans will have health insurance.

•New tax credits and tools will help contain costs and improve quality – so we all get better VALUE.


Five Facts – The New Law Will:

1.Not cut your basic Medicare benefits — and it will make some benefits better.

2.Reduce Medicare spending and the federal deficit, and extend Medicare’s solvency by twelve years.

3.Help people find and pay for long-term care at home.

4.Improve health care for seniors in other ways.5.Improve coverage and protections for younger

Americans with and without health insurance.


Our Goal Today

How did we do?What questions do you have?

Just the Facts, Ma’am. Just the Facts.


Straight Talk for Seniors:Will Health Care Reform Change Your Health

Care?For more information:www.NCOA.org/StraightTalk

www.medicare.gov1-800-MEDICARE

Local Health Insurance Counseling Office

Improving the lives of older Americans Straight Talk Webinar WELCOME This session will begin promptly at 3:30pm EST Please mute your phone To hear the.

Documents

advocacy organization

medicare medicare solvency

national council

nonprofit service

medicare payments

medicare services

medicare finances

overall medicare