(July 30, 2014) -- Thanks to President Johnson, a right of passage upon turning 65 has become enrolling in Medicare. Medicare was signed into law on July 30, 1965, and celebrates its 49th anniversary this month. Under the leadership of President Johnson, Medicare originally was established to provide health insurance to people age 65 and older, regardless of income or medical history. Before Medicare's creation, approximately 65 percent of those over 65 had health insurance, with coverage often unavailable or unaffordable to the rest.
"Prior to Medicare, it was generally a pay-as-you-go system," said Dana Forgione, the Janey S. Briscoe Endowed Chair in the Business of Health in the UTSA College of Business. "Medicare payment was originally based on cost reimbursement, so costs rose under the system.
"It was originally projected to cost $8 billion by 2002, but today the costs are nearly $750 billion," said Forgione, an expert in health-care financial management. "The most significant change to Medicare occurred in 1983 where they changed to a prospective payment system -- fixed price controls based on a particular diagnosis. While price was controlled, volume was not, resulting in the over-utilization of services."
The latest health-care initiative is the creation of the Affordable Care Act. While it is too soon to analyze the success of this program, Forgione notes that the program is focused on bundled payments, accountability and quality of care.
According to Forgione, when Medicare began, eight workers supported each retiree. Now there are five workers per retiree. In the future, when the baby boomers begin retiring, there will be only 2.3 workers supporting every retiree.
Yet, Forgione agrees that the Medicare system was needed. "Medicare filled a need," he said. "A lot of elderly and retired individuals as well as those with disabilities and end-stage renal disease are provided with government health care because of this law."
With Medicare occupying a huge chunk of the economy, what can be done? Forgione offers three suggestions to improve the current Medicare system.
"With 30 percent of Medicare costs related to hospitalization, we need to incentivize the hospitals to improve efficiencies. We also need to incentivize appropriate care and support quality care for patients."
Forgione leads the college's Business of Health program, which includes a Business of Health concentration in the MBA program, a dual degree MBA/MPH program with the University of Texas School of Public Health and a graduate certificate program. The Business of Health program provides individuals with practical skills needed in today's health-care field. The focus of the program is distinctively on the applied financial and managerial aspects of health care.
Learn more at the UTSA College of Business online to learn more.
President Taylor Eighmy is inviting all UTSA faculty and staff to "Tacos With Taylor." Take the opportunity to introduce yourself to the President at any one of these casual meet and greets.
Frio Street Building, Food Court Commons Area, Downtown Campus
Celebrate 40 years of BestFest, an annual event hosted by Roadrunner Productions as a part of UTSA Homecoming festivities. The event will feature a carnival, food and drink booths, a golf cart parade, firework and live music from Anthem.
Brackenridge Lot 1, Main Campus
Celebrate homecoming as the Roadrunners take on Rice. Come early for the Spirit Walk, tailgating, games, music and food. Stick around for a halftime show with SOSA and the crowning of Mr. and Ms. UTSA.
Alamodome, 100 Montana St., Downtown San Antonio
The Leadership Storytelling Homecoming Brunch brings together UTSA alumni and students to share a delicious meal as well as a roundtable conversation about how experiences in college carry us forward on unique leadership journeys.
University Center, Denman Room (UC 2.01.28), Main Campus
The conference is dedicated to sharing recent knowledge and experiences gained in the area of Big Data by researchers in academia, industry and the government sectors within the areas of business, national security, infrastructure, healthcare and visualization. The conference fee is $45 and includes breakfast, lunch & parking. Free for students and non-academic government employees. Register here: https://www.regonline.com/UTSAdataconference2017.
H-E-B University Center Ballroom (HUC 1.104), Main Campus
Former National Security Advisor Susan Rice, via webcast, will examine America’s economic, political and security relations with China during CHINA Town Hall, an 80-city live discussion and Q&A on China and Sino-American relations.
Building Building, Richard Liu Auditorium (BB 2.01.02), Main Campus
The African American Studies program proudly presents William "Cruz" Shaw, San Antonio City Councilman and UTSA Alumnus. Event is free and open to the public.
University Center, Retama Auditorium (UC 2.02.02), Main Campus
The graduate fair is an opportunity for the UTSA student body and local San Antonio community to learn about graduate education opportunities. The event is free and open to the public.
H-E-B University Center Ballroom (1.104), Main Campus
The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. As an institution of access and excellence, UTSA embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property - for Texas, the nation and the world.
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