$600-Million National Healthcare Shortfall Gets Temporary Fix

cccmedia wrote:

Ecuador's Social Security chief, Ricardo Espinoza, blames poor administration and too many health-specialist referrals for a $600-million shortfall in the IESS healthcare program.  The system's annual cost is $2.1-billion and income from participants is $1.5-billion.

He says he used his legal powers this year to transfer enough money from a pension reserve to cover the shortfall.

Espinoza says the situation is temporary and no healthcare or pension benefits will go unpaid by the system.

"All members are protected," he said.

The IESS healthcare program is attractive to many Expats because they can participate for as little as $73 per person per month (about $10 more for a couple) and there are typically no deductibles or pre-existing-conditions exclusions.


Source:  www.cuencahighlife.com

  -- cccmedia in Quito

Transferring funds from a pension fund to cover healthcare cost overruns.  Sounds very USA, such things are always temporary. 600 million shortfall in a 2.1 billion fund is a huge percentage, about 30.%  if all rates were increased 30%, then the $73/month would shoot up to $95/month.  Not exactly a deal breaker, still less than the soon to rise $106/month part B Medicare.

I have recently read that Medicare B may increase from the current $109.40 per month (this amount is higher for seniors in 6-7 figure income brackets) and that there will be no cost-of-living increase for those collecting Social Security benefits. I can tell you, as many of you probably have found, that out-of-pocket costs for Rxs, medical tests and procedures, etc. will increase substantially in most Medicare health care advantage plans. For example, a tier 1 generic BP medication which was $0 OOP last year will be $10-15 more per script (with some scripts being limited to a 30-day supply as opposed to 90 days) and for individuals who must take tier 3+ medications, the costs are prohibitive for many. We can only wait and see what Medicare's final disposition will be regarding the Part B payments for 2016.
Regards,
PS

peripatetic_soul wrote:

I have recently read that Medicare B may increase from the current $109.40 per month (this amount is higher for seniors in 6-7 figure income brackets)....

We can only wait and see what Medicare's final disposition will be regarding the Part B payments for 2016.

As was posted on this forum in September, there will be no COLA increase for Social Security beneficiaries in 2016.  PS is correct about that.

With regard to Medicare premiums, however, the current Part B minimum in 2015 is $104.90, not $109.40.

Update from the Medicare website:

"In 2016, the standard Part B premium amount will be $121.80....  Most people who get Social Security benefits will continue to pay a Part B premium of $104.90 each month...."

Confused yet?

First of all, many high-income individuals will pay more than $121.80.

Secondly, the issue of how much you may actually pay is hashed out in detail at the Medicare site.  Bring your pen or pencil....

https://www.medicare.gov/your-medicare- … costs.html

  -- cccmedia in Quito

peripatetic_soul wrote:

out-of-pocket costs for Rxs, medical tests and procedures, etc. will increase substantially in most Medicare health care advantage plans.

Whether to pay for adequate Medicare coverage is a complex yet important subject that each eligible Expat reaching 65 must decide.

Part A, which includes in-hospital care, does not carry a premium for eligible Expats.  It's automatically provided for those who have paid at least a set amount over the years into Social Security.

Part B was discussed above and bears further research by Expats.

Many of an individual's medical costs may not be covered by Parts A and B.  Expats deciding whether to participate in Medicare payments should learn about Medicare Advantage and Medigap. 

Some parts of Medicare cannot be purchased by Expats living outside the U.S. and its territories -- unless they return to the U.S. .. establish a residence there .. pay penalties .. and wait for the newly-purchased parts to kick in.

Some good sites for relevant research include www.elderlawanswers.com and www.medicare.gov ...

cccmedia in Quito

Pardon me, ccc, I transposed two digits ($104.90).

Recently, Medicare also stated that seniors who did not opt for automatic withdrawal of payments from their bank account would be charged more---defies logic, eh? Then I heard they were waffling about how much of an increase and for whom and based on which criteria (that will take them a while to conjure up a rationale for same) You're so right - don the reading specs and be prepared to take notes. All we can do is wait and see. Happy holidays to all.

Regards,
PS