Economic Impact of Providing Health Care to an Aging Population

Lori Ranzino-Renda

University of Phoenix

Geoffrey J. Suszkowski, Ph. D., LFHIMSS

August 8, 2011

The economic issue is largely due to the aging

population, known as the baby boomer generation. The issues facing the United States and possible solutions are presented within this presentation.

The Investigation Team, known as Team C will uncover the economic impact and the probable solutions to avoid potential problems in the future.

Introduction

Medicare/Medicaid Bankruptcy No Informal Care Options Decline for the

Elderly Long-term Care Facilities are Understaffed Elders Living Longer with Chronic Illnesses &

Disease

Issues We Face

1935—The Social Security. 1960— Medical Assistance For The

Aged Program—the Kerr-mills Program.

1965--Social Security Act was signed into law on July 30, as amendments to the original Social Security legislation.

1935, 1960, & 1965…

Medicare Is Financed Through Payroll Taxes. Medicare Funds Residency Programs. Medicare Funds Teaching Hospitals. Medicare Controls Graduate Education. Medicare Controls Reimbursements Rates. Medicare—Education Funding Freeze, 10

years and counting…

Medicare Funds Affect the Number of Physicians Trained in the United

States

“Most Health Spending Comes Near the End…”

It’s no laughing matter.

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National AveragesAnnual Cost of Care—Private Nursing

Home

Year Annual Cost

Increase

cost every 5 years

Increase

since 2005

Percent of

Increase

Average

percent of

increase

Average

increase

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Age of

those born

in 1946

Age of

those born

in 1964

2005 74,095 61 43

2010 94,500 20,405 1.275 64 46

2015 120,608

26,108 46,513 1.627 1.451 23,256 69 51

2020 153,930

33,322 79,835 2.077 1.659 26,611 74 56

2025 196,458

42,528 122,363

2.651 1.907 82,903 79 61

2030 279,361

82,903 205,266

1.36 1.798 153,159

84 66Figure 1: National Averages Past & Future: Cost for the Baby Boomer Generation–Those born between 1946 to 1964.

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How many millionaires are there in the U.S.? … and some other interesting economic factoids

In 2009, the number of millionaires in the United States rose 16 percent to 7.8 million. The top 10percent of Americans now earn around 50 percent of our national income. 83 percent of all U.S. stocks are in the hands of 1 percent of the people. The bottom 80 percent of American households held about 7 percent of the liquid financial assets. The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the

nation’s wealth. 61 percent of Americans “always or usually” live paycheck to paycheck, which is up from 49 percent in 2008

and 43 percent in 2007. More than 40 million Americans are on food stamps. 21 percent of all children in the United States are living below the poverty line 36 percent of Americans say that they don’t contribute anything to retirement savings. 43 percent of Americans have less than $10,000 saved up for retirement. 24 percent of American workers say that they have postponed their planned retirement age in the past year. The average federal worker now earns 60 percent MORE than the average worker in the private sector. More than 40 percent of Americans who are employed are now working in service jobs. In China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes

approximately 22 cents an hour.(Home, K., 2010).

The Economic Disparity in AmericaIt will Affect Health Care Spending in the Future

Solution 1: Educating the Aging Population

Will reduce spending.

Solution 2: Promoting Healthier LifestylesWill reduce spending.

Solution 3: Investing in Health Care ProvidersWill help to meet the demands of

the increasing aging population.

The Solutions

Eliminate the strain the

aging population has put on the health care industry.

Educate the aging population on how they can reduce health care spending.

Investing in health care providers to care for the geriatric population.

Reasons for the Solutions

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Promote a Healthier Lifestyle

The Best SolutionLifestyle Changes

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The following are the necessary steps to implement our

solution: Create healthy lifestyle classes and educational

pamphlets focusing on eating habits, good healthy nutrition, vitamin supplements if deemed necessary, and regular exercise.

Seniors over the age of 55 will be required to get six month check-ups in order to keep their health insurance coverage, regardless if the person has private insurance or some form of government insurance coverage.

Recruit health care professionals who specialize in geriatric care.

Solution—Implementation

In conclusion, by continued community participation and providing knowledge to

seniors will help them to make better choices. Preventative care is necessary to keep the aging

population as healthy as possible in future decades. The highest cost of care comes as the end of

life nears, by making better choices now, one can help detour illness and disease normally

associated with the aging process. Healthier choices will impact, relieve, or at least sustain, an

already strained health care system. Implementing health care reform will prove to be beneficial

to all Americans.

America also has to find a way to educate more doctors. The shortage of primary care

physicians (family medicine, internal medicine, pediatrics and psychiatry) needs to be addressed

now. Becoming a doctor takes many years of education, training, hands-on instruction, and

hundreds of thousands of dollars in education costs. Americans need to push our government to

open up more residency spots so we can have access to health care professionals in future years.

Conclusion

Homa, K., (2010). 22 statistics that prove the middle class is being systematically wiped out of existence in America.

Retrieved from, http://www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-

wiped- out- of-existence-in-america-2010-7#dont-miss-23#ixz

Marshall, C., & Salzer, J., (1976) . Transmitting health education to the elderly via cable television. Mount Sinai School

of Medicine of The City University of New York. Geriatrics, 31126 passim. Retrieved from EBSCOhost.

Mass Mutual, (2011). National average annual cost of care for 2007. Retrieved from,

http://www.massmutual.com/mmfg/pdf/ltc_costofcare.pdf

Rosenblatt, R. A., Andrilla, C. H., Curtin, T, & Hart, L. G., (1 March 2006). Shortages of medical personnel at community

hospital health centers. Retrieved from, http://www.jama.ama-assocn.org/cgi/content/full.295/9/1042

Social Security Administration, (2011). Social Security history. Retrieved from http://www.ssa.gov/history

The Delta Companies, (2011). Physician shortage. The Physician Recruiting Standard Newsletter. The Delta

Companies. Dallas, TX.

References