Question.1119 - Option #1: Medicare Solvency Submit a Memorandum to the director of business operations that examines the Medicare Trust Fund and its projected solvency. Address the following questions: What is the Medicare Trust Fund? What is the current state of the fund? What are the future challenges faced by the fund? Discuss the factors that have created these challenges. Your memorandum should be well-written and meet the following requirements: One to two pages in length Formatted according to guidelines in the CSU Global Writing Center. Include at least two credible references. The CSU Global Library is a good place to find these references.
Answer Below:
Module 2: Critical Thinking Mohammed Fawzi Colorado State University Global HCM 5001 Thomas Clobes October 20, 2023 Memo To: Director of Business Operations From: Mohammed Fawzi Date: 10-20-2023 Subject: Examination of Medicare Trust Fund and its Projected Solvency I am writing to provide you with an overview of the Medicare Trust Fund, its current status, and the issues it faces in the future, as well as the factors that contribute to these concerns. The article "Medicare: 21st Century Challenges Prompt Fresh Thinking About Program’s Administrative Structure" by Scanlon notes, "As health care delivery grows more complex, HCFA accumulates new responsibilities—sometimes, however, without receiving the resources or the tools to adapt". The Social Security Act creates a significant government fund that is necessary to have two major healthcare programs in the United States: Medicare Part A and Part B. The major purpose of this fund is to offer a consistent source of funding for these programs, providing that individuals who rely on them have constant access to critical healthcare services. Part A requires hospital services, but Medicare Part B requires medical care such as visits to the doctor and clinic treatments. As of the latest available data, the Medicare Trust Fund faces a number of challenges that impact its current state. As highlighted in Castro's article, "Current estimates project that one of the trusts that cover a large portion of Medicare (the Hospital Insurance (HI) trust fund) will become insolvent by 2029, potentially collapsing the very program that older Americans have paid into for years". The most crucial concern is the fund's liquidity. Unless a law is modified, the Trust Fund will no longer be able to pay all of its financial obligations, notably those relating to Medicare Part A. The Medicare Trust Fund is facing challenges from various factors that will persistently threaten its ability to remain sustainable over the long term. As per Castro, "The Medicare problem is not only an actuarial one; the problem is that real Americans may soon face lower quality of health care at higher costs if immediate legislative actions are not taken to ameliorate what could be an approaching health care crisis". These factors include the aging population, increasing healthcare expenses, a decrease in the worker-to-beneficiary ratio, economic instability, and legislative actions and reforms. Please let me know if you want more analysis or particular Medicare Trust Fund data. Regards, Fawzi Health care manager West Coast Enterprises 58 Kearney Street San Francisco, CA 94108. References Castro, O. (2019). The Medicare Problem: A Solution to Insolvency. BYU Journal of Public Law, 33(2), 355–379. Scanlon, W. J. (2000). Medicare: 21st Century Challenges Prompt Fresh Thinking About Program’s Administrative Structure: T-HEHS-00-108. GAO Reports, 1.More Articles From Medicine
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