(PRWeb UK) June 24, 2010

In response to the Emergency Budget today, Michelle Mitchell, Charity Director at Age UK, said:

“If the Chancellor’s projection of a one quarter cut to public service budgets is applied to older people’s care thousands of lives will be lost.

“Our research shows that cuts of this scale will be disastrous for older people who rely on state supported care services. There would be almost no money to support people in their own homes, as councils will have no option but to support the most disabled living in care homes. As the number of people over 80 needing support grows, the current crisis will only escalate over the next four years.

“Unless the Chancellor safeguards social care spending in the Autumn spending review, he will fail in his quest to protect the most vulnerable from budget cuts.

In addition, Michelle Mitchell said: “We are delighted the Government is introducing a ‘triple guarantee’ to raise the basic state pension from April, and also a matching increase for Pension Credit which will help the poorest in later life. But this is offset by the rise in VAT which will hit poorer households hardest, including low income pensioners.

“The consultation on phasing out the Default Retirement Age is another welcome shuffle forward towards ending this unfair and unsustainable law. But to give tens of thousands of older workers the job security they deserve, we need a definitive commitment and timetable.”

Read up more on what the Emergency Budget means to all of u s.

Notes to editors

Age UK is the new force combining Age Concern and Help the Aged. The Age UK family includes Age Scotland, Age Cymru and Age NI.

###

Share on Facebook

Pensions and Pension Information

Share on Facebook

This change addresses the cost of common medical equipment and supplies that are used to help seniors get the care they need to stay at home, such as diabetic supplies, oxygen equipment and wheelchairs. According to multiple government reports, the fee-based system used in Medicare to pay for such medical equipment for home use not only inflates costs, but is also subject to fraud.

Cutting Costs Nationwide by One-third

Nationwide, the new bidding system is projected to cut costs by an average 32 percent. It’s anticipated that the average savings will be even greater in Florida with a reduction of 34 percent in Central Florida and 35 percent in Southern Florida. These savings can benefit not only seniors, but taxpayers as well. Here’s one specific example: In Central Florida, the cost of an oxygen concentrator averages about $ 173.17 monthly. That could drop to $ 115 a month, but remember that reductions may vary depending on the kind of equipment or supplies as well as by the location. With greater reductions expected in Florida, the $ 127.12 average cost of a hospital bed for a month could fall to just $ 85.79.

Nine Florida metro areas are scheduled to participate in the new bidding system next year, but expansion to many other regions is planned. Once this system spreads across the nation, it’s estimated to save approximately $ 17 billion in a single decade, according to Medicare deputy administrator Jonathan Blum.

Will Medicare Supplement Plans Change?

These and similar savings are anticipated in 2011 unless the industry succeeds in efforts to kill the new bidding system. U.S. Rep. Kendrick Meek is trying to stop the bidding system before it gets started. Despite his support in the House, attempts to block the savings are going nowhere in the Senate.

With such drastic reductions in the cost of medical equipment and supplies, the Medicare Supplement industry may feel governmental and public pressure to either lower premiums or expand benefits. After all, if Medicare supplemental insurance spends less in equipment and supplies costs, why not pass at least some of the savings back to “valued” customers?

And the Winner Is…

Medical equipment and supply companies have already submitted bids, and the Centers for Medicare & Medicaid Services are evaluating which winning bidders will be offered contract proposals. Their final decision will come in September so it may take a while to see whether this system will produce lower premiums or increased benefits among Medicare Supplement Insurance Plans.

There’s also the possibility that companies not awarded contracts will succeed in lobbying Congress to thwart the savings. With Medicare already running on empty, that seems like a long shot. Historically, humanity has shown a tendency to ignore reality right up to the bitter end, but with repeated projections that Medicare wasn’t sustainable for the baby boomers generation, corporate America may be forced to compromise.

Don’t Miss Beneficial Changes

This new bidding system, the coming healthcare reform changes and the aging U.S. population may all have an impact on Medicare Supplement Insurance in coming years. One way to stay on top of this and be sure to get the advantage of lower premiums and/or expanded coverage is to request an annual review of these plans.

Agents offer annual reviews to customers and websites make comparing Medigap Plans quick and easy. In the long run, it pays to shop around when your health makes changing plans simple. Compare new plans as they come to market on a regular basis, and you’re more likely to find better values and save more of your hard-earned retirement assets.

Share on Facebook

Medicare & Medicare Programs

Share on Facebook

Fight to Keep Your Physician

Social Security Reports, News and Informaion

Share on Facebook

Medicaid and Medicare

Share on Facebook