AARP: Health Reform Must Lower Costs, Improve Care for People in Medicare

Published: 2009-06-16 14:09:50
Author: AARP | May 12, 2009

May 12, 2009 -- WASHINGTON—As the Administration prepares to announce another drop in the lifespan of the Medicare trust fund, AARP’s Health Action Now campaign is insisting that comprehensive health reform include specific measures to cut wasteful spending and lower costs for individuals—all while improving the quality of care. The organization is focusing on reducing waste in Medicare, particularly by reducing costly hospital readmissions and cutting billions of dollars in fraud.

“For most Americans, the biggest roadblock to health careis cost,” said AARP Executive Vice President Nancy LeaMond. “By rooting out the waste, fraud and abuse in Medicare, we can improve the health of people in the program, improve access to quality care and save billions of dollars.”

Putting an End to Preventable Hospital Readmissions

AARP is telling lawmakers that any health reform package must include a Medicare follow-up care benefit, which would help people safely return to their homes or another setting after a hospital stay, coordinate their health care needs and prevent unnecessary hospital readmissions. Such a benefit can help save some of the over $17 billion Medicare spends on largely preventable hospital readmissions and significantly reduce the 20 percent of people in Medicare who are readmitted to the hospital within 30 days of their first visit.

“Too many Americans are landing back in the hospital because they are sent home without the information and direction they need,” added LeaMond. “We can keep people healthier by making sure they get the right care the first time around.”

AARP is proposing a benefit designed to support people as they move from the hospital to their homes, skilled nursing facilities or rehabilitation centers. Its goals would include delivering the services they need to stay out of the hospital, managing their medications and supporting their family caregivers. Targeting the most at-risk individuals, a team of health professionals would assess patients and their caregivers before leaving the hospital. The team would work with patients and caregivers to develop a plan for appropriate follow-up during and after the transition.

Saving Billions by Stopping Medicare Fraud

AARP is also working with leaders in Congressto fight Medicare fraud throughout the program by stepping up enforcement and prosecution. Rooting out fraud will save billions of dollars for people in Medicare, holding down their premiums and out-of-pocket costs.

LeaMond added: “Regardless of where lawmakers stand on the political spectrum, nearly all agree that paying for health care fraud is unacceptable. Medicare needs to be a leader in cracking down on fraud so everyone in the program can save on their health care bills.”

Eliminating wasteful spending by providing a follow-up care benefit is one of many ways we can lower health care costs and improve patient care, especially for individuals with chronic illnesses. A recent report by AARP’s Public Policy Institute, “Chronic Care: A Call to Action for Health Reform,” details the state of chronic care and offers recommendations for improving care for the chronically ill, including transitional care after a hospital stay. The report can be found at http://www.aarp.org/research/health/carequality/beyond_50_hcr.html.

For details on AARP’s health reform priorities, visit http://www.aarp.org/governmentwatch.

Source: AARP

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