Question

The rapid growth of the oldest age group will have a major impact on future health care costs. Medicare costs for the oldest old may increase significantly in the near future. What costs containment strategies do you recommend?

Answer 1

Firstly such increase in medicare costs can be dealt with increasing taxes which raises government income to spend in medicare costs . Secondly a part of income can be deducted from a person and invested in medicare fund so that this fund can be utilized when this person becomes old . Thirdly measures should be takes to increases the working age population and decreasing dependency ratio because as working age population rises , more employment and production occurs which means more taxes and hence more money to spend on medicare for old .