Health Maintenance Organizations (HMOs) are organizations that provide managed care for health insurance contracts. As the definition outlines, the cover is not a guaranteed benefit that a designated beneficiary would get in times of need. The reason for this is due to the fact that these organizations work only for the purpose of managing health insurance contracts. Therefore, no contract no intervention. Sir, with this type of perspective and the ambiguous nature of economy, scrapping Medicare expenditure would be the exact same thing as taking security off the budget. This nation may and his wealthy but many are times when budget deficits are a factor not far away from.

With the floating and sinking nature of the economy, the nation and especially the minister for finance are afraid of having to deal with a problem similar to that of 1929 to 1941. The Great Depression and the global economic crisis are issues that people and government find hard to deal with. As the nations and their governments are struggling to deal with the economic crisis, it is necessary for the congress to look in to the issue of stock market crash. When potential Medicare customers lose faith in the operations of the government and the involvement of the officials they elected to the congress, the stock market assumed stability will soon start to role down south and before long other sectors of the economy start following suit(King, 2010).

Medicare in a State of Crisis: The question of Medicare being or not being in crisis can only be answered by a look at the numbers. Considering the tax cut of 2001 and the tax cut that followed the Obama administration, it is worthy noticing that the government revenue to fund sectors like the Medicare is not as sufficient as it should. For this reason, the government has left the task to the stakeholders and is acting as if it has nothing to do with it. The stakeholder being employees, employers, insurance companies, and the HOMs, the government is even finding it hard to regulate the sector with it involvement in funding diminishing day by day. When employers think of employees as a burden when it comes to Medicare benefits, this means a cut on retirement benefits. When the employees are struck by these kinds of predicaments, they are forced to deal with their health issues by employing the out-of-pocket criteria. F for this reason Mr. Hughes it is the duty of the government to look into the issue to consider the lives of the people that may be in danger by abolishing the Medicare Expenditure

Funding of Medicare: If the amount of money that is singled out in the budget each year is investigated on the kind of things that are used in. Many of the tasks and projects that the amount used in are not under the clause of Medicare. With hospitals, dispensaries, clinics, and physician labs being put up all over the nation, we cannot argue that these are the issues that the Medicare is made up of. Too many, the funding of Medicare is not an issue that had been addressed with integrity and for tis reason many feel like Medicare is not funded at all. Officially and actively, Medicare is supposed to be funded in terms of how the beneficiaries can access it. By considering the issue of the HMO, doesn’t finding a PCP involve spending? When one has been referred to a certain clinic, dispensary or to a therapist within the HMO network, who pays for all that? The government funding of Medicare should be in form of making the service cheaper and accessible to every citizen. We cannot rely on the issue of funding while the government if operating on profits basis so that it can send more troops to foreign countries (Smith, 1979).

Medicare and the Elderly: The elderly are mostly the group that is less productive in terms of the economy. In this case, the packages that have been put in place to assist the elderly with the Medicare issues have seemed like insurance cover of their old age. In many organizations, health care benefits are partially provided when one is working and there after they may be fully funded. The fact that many a good percentage of employees in these organizations have to fund their retirement benefits, it seems to them that upon retirement any other form of health assistance they may get from the companies and organizations may be a package to let them have a dignified life in their inactive phase. This can be compared with the issue of fire insurance, where the covered goods and property can only be compensated upon destruction by fire. With the fact of employees being denied their rights of health care cover under the grounds of retirement benefits feels the same as the cover for fire or any other property (Commerce Cleaning House, 2004).

The Perception Accuracy: the elderly are capable of formulating an explanation for everything that they do not agree with. On the side of an analyst, it is hard to argue the matter without rising up the important issues that the elderly go through. The elderly assume that they should have been covered by the policies long before they retired. On the other issue, the employers feel like employees can fend for themselves as long as they still are at work. The perception is not as accurate ass the elderly wish it was when looking at it without leaning on any side. The inaccuracy of the perception involves a contradiction on the contracts people have to get into in order to secure the jobs. Many people do not think in terms of insurance cover when they are in the process of making themselves familiar with the job environment. When the truth of the matter sinks in and they find out the health benefits would not be coming their way until they retired that’s when the perception gets the better of them. The perception is not accurate at all, Medicare in terms of cover by either the government or the employer is a benefit that all should embrace. When at work, one can afford health care by himself of herself.

Medicare Programs: Medicare programs should be there for the benefits of the people and for the reason of putting taxi payer money to some form of beneficial task. The taskforce of ensuring equitable distribution of Medicare is supposed to be taken care of by the use of these programs. Considering the amount of work that needs to be done to ensure that everyone is content with the government means the use of more than just the Medicare programs. Besides the proposal to scrap Medicare expenditure and implement HMO the government is likely to propose the use of Preferred Provider Organizations (PPOs). In this case, be it the HMO or the PPO, the issue is the same and the government wants to bail on the issue.

The implementation of the HMOs is a plan for the government to get the issue of funding Medicare out of the way. For this reason, Mr. Hughes, you need to be of sound mind when going to congress with this issue. The elderly need Medicare and insurance cover, would the HMO provide that? It is impossible for the government to deposit checks in the mailing system for all the elderly people. But considering the amount that the elder make annually, it is barely enough to cover for their transport needs. The inactivity phase that launches in towards retirement should be the issue the government must deal with. ‘Insurance,’ if that’s the right term for Medicare covers to the elderly should be provided by the government so that that inability of this generation can be prevented from becoming a disability. The right to life and the right to good life can all be argued by the example of national security. Since 9/11, millions or dollars from the taxi payer revenue has been directed to secure the nation against external attacks. Within the nation, people are struggling with unfavorable economy and the lack of health insurance. The insurance companies themselves do not even engage in ethical practices any more. Consider this and you’ll see the importance of insurance cover from the government to the elderly (Yang, 2009).

Marketing Medicare: Medicare doesn’t have detrimental effect on the market for healthcare and healthcare insurance. The reason for this is due to the fact that Medicare deals with other sectors of the economy including healthcare. Medicare and healthcare do not cross paths in terms of market in that the elements that are used in Medicare are the same as those that are used in healthcare. Doctors, hospitals, dispensaries, clinics, and physicians are all properties that are used by Medicare and the healthcare. The approach method may be different but no matter who provides the funding and how payment is settled, all the elements are served equally. There could be a problem with Medicare in terms of messing the healthcare insurance market in the HMO and PPO policies were made compulsory. The reason for this would be the fact that clients and potential customers would only be getting health assistance from registered network facilities. Given the open nature of HMO for a client to choose what facilities to go to, other healthcare institutions would be placed in a bad position in that there would be less market for their services and packages.

Economic Effects: Medicare if taken and the HMO way or even worse the PPO way can be damaging to the economy. The influence the terms and conditions of these policies make if clear that one is supposed to only be operating in a network. With these negative effects having the ability to cripple the market, there should be another way out. To make people and citizens believe that a balance is achieved, a program that equates the negative effects should be in place. Unfortunately, that program does not include insurance for the elderly. The elderly should be insured but that insurance should not be used as a shield against the negative effects on the economy that will befall the nation under these HMOs. Funding for the insurance covers takes funds off the taxi payer revenue collection. On the other hand, HMOs block the opportunities to enhance the economy by taking the market out of the hands of the healthcare insurance and healthcare market (Helms, 1999).

Caring for the case of elderly in the society is a different case when assessing the effects of the Medicare and the healthcare. The economic effects that are associated with Medicare are in form of market for medical services around the people. The elderly care at the society level is not tied down to the same issues as those on the HMO grounds thus the effects may be present but not impacting a specific part of the economy.

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