$7,681 Per Year, Per Person

Economists at the Centers for Medicare and Medicaid services (CMS) report in this month’s Health Affairs Journal that US health care spending grew to $2.3 trillion in 2008. That is $7,681 per year, per person. Costs for health insurance over the past few years have also grown substantially. At CMS, Jonathan Blum states “Health care spending as a percentage of GDP is rising at an unsustainable rate. It is clear we need health insurance reform now.”

As baby boomers age and seek more health care services will they be pleased with their choices? History suggests that unless health care is controlled they will not be happy.

The Wall Street Journal article, “Health Outlays Slow” by reporters Janet Adamy and Avery Johnson quote David Corday, now CEO of Cigna, “We see a more aware and engaged customer, and more targeted spending.” The article also quotes, health care coalition leader Helen Darling, “Americans have really changed their buying behavior. Health care is a consumer good.”

Health care for seniors are showing these trends as well. Medicare Advantage plans are offering risk based choices that can save consumers significant money if a large health care crisis does not occur. However, if a crisis does occur, coverage for long term care expenses are often more limited with a Medicare Advantage Plan than Traditional Medicare.

When on a Medicare Advantage plan, it is important that you understand your choices and options upon discharge from a hospital.

The Informed Elder Institute is dedicated to providing this type of information to elders and their caregivers through series of public talks throughout the community. More information about the Informed Elder Institute can be obtained by attending one of these free seminars or calling 813-226-0000.