Medicare Budgetary Cuts May Prove Detrimental

Jan 18 2014, 5:50am CST | by , in News | Other Stuff

Medicare Cuts May Prove Detrimental
Image Credit: Medicare

After Obamacare got rolling, the budgetary cuts in Medicare may ultimately prove to be detrimental. This tug of war is bound to occur as various medical insurance schemes via for funds.

While Obamacare is being given all the media hype and moral support from the Democrats, there are other older medical caregivers that are not being given any attention. The way things are going, the concentration of wealth in one source is an ideal recipe for monopoly. And this is not such a good thing. UnitedHealth Group is one such agency that has faced a similar situation. Its shares have taken a nosedive. 

According to an analyst such an occurrence is pretty rare but it is happening now and has to be dealt with. The whole issue is the medical cost ratio which has undergone disturbance. Besides UnitedHealth, the shares of several other firms such as WellPoint, Aetna, Cigna and Humana underwent a downward spiral too. 

Especially Medicare and Medicaid have their backs against the wall. For all purposes they won’t be able to take the heat much longer if budgetary cuts keep eating away into their funds. With the Affordable Care Act being implemented quite aggressively by the Obama administration, the rest of the medical coverage centers are being forced to tighten their belts by many notches. 

It is a time of troubles as technology hassles and other hurdles are getting in the way of proper patient care. And while UnitedHealth has billions of dollars at its disposal, it is still worried about the fate of Medicare, which comes under its aegis. The gain of one party is the loss of another. At least that is the way of the world. 

Source: Reuters

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