(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.
The UTSA community welcomes students to their on-campus home! Laurel Village, Chaparral Village and Alvarez Hall are home for 2,300 students during the academic year, and Move-In event kicks off the start of Roadrunner Days.
Laurel Village, Chaparral Village, Alvarez Hall, Main Campus
The College of Engineering hosts this seminar featuring Jeff Adams, Southwest Zone Quality Manager, Siemens Building Technologies Division. The event is free and open to the public.
Engineering Building (EB 3.04.30), Main Campus
This is a terrific opportunity for incoming transfer students to network with staff that serve our veteran, non-traditional, and transferring students, as well as meet transfer peer mentors who can help answer questions about UTSA.
Main Building ground floor lobby, Main Campus
After a day full of moving and getting settled into their new UTSA home, students and their families can have some refreshments and snacks at the Welcome Back Reception. The event tops off with the premiere performance of the Spirit of San Antonio, UTSA's Marching Band.
University Center Paseo, Main Campus
Can you survive the library wilderness? As a part of Roadrunner Days, UTSA Libraries is hosting a mobile adventure for you to play and find out more about the library!
John Peace Library, 2nd floor, Main Campus
Come meet your UTSA Volleyball Team as they gear up for the 2017 season! The game begins at 5 p.m. then the team will hold an autograph and photo session after the game.
Convocation Center, Main Campus
This engaging discussion pulls back the covers on hooking up, clarifying when it’s actually sexual violence and how bystanders can protect potential victims from predators.
University Center, Retama Auditorium (UC 2.02.02), Main Campus
Late Night at the Rec is an awesome UTSA tradition that transforms a standard information session into an exciting night of fun. At this annual event, you’ll be able to learn about our facilities, recreation programs, and wellness services offered at Main and Downtown Campuses.
Recreation and Wellness Center, 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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