Social Security and Medicare: Funding Concerns

Recent news developments regarding Social Security as well as Medicare shouldn’t scare you away from researching and comparing plans that work for you. Connect with a licensed insurance agent today by calling (800) 950-0608 to learn about Medicare plan options available in your area.

Has Medicare Funding Reached the End of the Line?

Three months into a new year, news about Medicare and Social Security funding cuts is already reaching a fever pitch. Both sides of the mainstream political spectrum and individual members of Congress are constantly flinging accusations at each other over which party wants to do the most damage to Medicare in 2023.

As always, the truth lies somewhere in the middle. But how much will it truly affect your access to primary care?

Cuts to federal funding will always be a dark cloud looming over the program. News of 2023 Medicare cuts is no different from news of cuts in the past. Only, now more than ever, the threat seems more real, and if these cuts come to pass, they could greatly harm senior citizens and Medicare patients who rely on Medicare coverage in many ways including primary care, controlled Medicare payment demands, access to a Part D plan, and a generally lower monthly premium charges (including the Part B premium).

Now, the question remains: should Medicare beneficiaries be worried about cuts to Medicare and Social Security funding? Let’s dig a little deeper and explore potential outcomes.

How is the Medicare Program Funded?

It’s a general belief that all Medicare programs are funded by the federal government. That’s only partially the case. Traditional Medicare: Medicare Part A and Medicare Part B, is funded completely by the federal government. Other parts of Medicare not offered by the federal government are funded in different ways.

There are certain Medicare plans that are offered by private insurance companies only. These include:

• Medicare Advantage Plans (Medicare Part C)
• Prescription Drug Coverage Plans (Medicare Part D)
• Supplemental Insurance Plans (Medigap)

As a result, they are funded in part by Medicare payment (monthly premium, copays, and coinsurance) paid by Medicare enrollees. While the federal government regulates these private health insurance plan types, they do not fund or sell them.

What’s Going On With Medicare Funding?

As of late, Senate and House Democrats have accused Senate and House Republicans of threatening to cut or outright eliminate funding for three programs: Medicare, Medicaid, and Social Security. Much of the recent concern from Democrats regarding Medicare and Social Security funding stems from plans floated by the House Republican Study Committee and Republican Senator Rick Scott to either vastly cut Medicare spending, or to let the program expire. Numerous senior Senate and House Republicans have sought to distance themselves from such plans.

In turn, Republicans have accused Democrats of overspending on these programs, which they claim in turn increases our national debt. They’ve also long accused Democrats of government overreach by refusing to allow Medicare to be completely privatized. Complete privatization of Medicare programs, they believe, is needed to keep the programs from running out of money, which would leave millions of seniors without needed health insurance.

The most recent political battle regarding cuts to Medicare has to do with Medicare Advantage. The Centers for Medicare and Medicaid Services (CMS) recently conducted an audit, which found that they expected an increase of around one percent for Medicare Advantage plans. This led the Biden administration and CMS to begin looking for ways to curb overpayments to insurers through plan audits.

This led to Senate and House Republicans, as well as insurers, fighting back against the proposed audits. Their argument is that the plan could result in a cut of 2.27 percent to Medicare Advantage plans. As a result, it is believed by all opposing parties that Medicare Advantage benefits could be reduced by as much as $540 per beneficiary next year.

What Does This Mean for Medicare 2023 and Beyond?

If you’re worried about what potential changes to Medicare and Social Security funding could mean for you, we advise you to take a deep breath. Both President Joe Biden and House Republican Majority Leader Kevin McCarthy have both stated that no cuts would be coming to Medicare in this year’s budget.

In terms of the proposed plan audits for Medicare Advantage plans, what many are claiming to be a 2023 proposal to cut Medicare simply seem to be a routine yearly adjustment. Representatives from both parties are also floating bipartisan measures meant to keep Medicare robust and healthy. This includes a recent budget plan set forth by the President to raise a tax on Americans who earn over $400,000 per year to extend the solvency of the program for at least twenty more years. 

When it comes to news regarding cuts or potential cuts to these programs, it’s very important to remember that we’re just a little over a year away from the 2024 elections, which means election season will be in full swing in a few months. Medicare and Social Security are always huge factors in elections, and that means candidates on both sides will use the looming threat of cuts and elimination to draw attention.

At MedicareInsurance.com, we seek to deliver news on breaking developments regarding Medicare and Medicare funding in a fair, impartial, and compassionate way. What does this mean? We’re here to help you cut through political jargon and find the truth regarding Medicare measures where they sit in the middle.

If you’re looking for information on Medicare plans in your area, feel free to give us a call today at (800) 950-0608. Our friendly licensed agents are always ready and willing to answer any questions you have about Medicare plans near you.