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Trouble Brewing in Retiree Health Care

Buried deep within the pages of today’s New York Times, we saw a headline that, unfortunately, came as no surprise: “More Doctors are Opting Out of Medicare.” Many doctors have concluded that the reimbursements from Medicare and the time and money wasted to paperwork make it uneconomical to take Medicare patients.  This is big news for Baby Boomers who planned to use the government program upon reaching retirement. We covered many of the issues with the American health care industry and with Medicare specifically in our special report “Health Care, a System at the Breaking Point.”  There are no easy answers here.   Demand will surge in the years to come with the aging of the Baby Boomers, far outstripping the existing supply of medical services.  Meanwhile, the supplier of funds–in this case the government–is already wildly in debt, with its fiscal position deteriorating every day.  

So, Medicare will continue to squeeze doctors…who will in turn continue to squeeze the final consumer–you, the patient!  This means that the cost of medical care will continue to rise, barring some attempt at socialized medicine (in which case the price might fall, but the quality would likely fall even faster).

Bottom line?  If you are approaching Medicare age, you will need to do a little research on your doctor.  Find out if he or she takes Medicare.  And be prepared to negotiate–some doctors will offer discounts for cash payment as opposed to going through Medicare or an insurance company.   The Hippocratic Oath aside, doctors are in this business to make money, and understanding their motivations and cost sensitivity can help you keep your bills manageable.