Decreasing Health Outcomes for Low-Income Elderly Americans
New Study from the University of Chicago Reveals Poor Health Outcomes for Low -Income Elderly Americans
If you’re signed up for Medicare through Doctor’s Choice, you know that we work with you to find the right plan to fit your health needs, budget and lifestyle. You also know that if there are changes to your plans, we will keep you informed and guide you through the process of switching if necessary.
Well, the rest of Medicare eligible Americans, specifically low-income individuals, are not so lucky. If you enroll in Medicare through the State, you will be automatically assigned default plans based on the CMS algorithm. The study found that “upon enrollment in Medicare’s Low Income Subsidy (LIS) program, only 16% of beneficiaries opt out of their default Part D drug plan and actively choose a different plan. There are 14 million LIS beneficiaries, representing 23 percent of the total universe of Medicare recipients, roughly 4% of Americans.” - harris.uchicao.edu
Why is this an issue? People are getting healthcare coverage right? Yes, but because of the default enrollment system and lack of information, the plans assigned are from a myriad of private providers who are not concerned with the low-income status of the individuals. That leads to a laundry list of issues including poor medication adherence and less use of healthcare services, especially among those with chronic diseases. The result is that low-income elderly people end up in the hospital or long-term care facilities where they continue to be billed for care, furthering their low-income status.
It’s a negative cycle that has been allowed to perpetuate for decades. Research has found that people stay subscribed to default plans, trusting that they are the best it’s going to get. This is why companies like Doctor’s Choice exist, to provide you with information so you know that you have options. But this problem extends to retirement savings plans, Medicaid, and other auto-enrolled government programs.
Federal auto-enrollment programs are perpetuating a situation of poor health outcomes for low-income elderly Americans in already challenging circumstances. Tim Layton, co-author of the study and associate professor of health and economics at Harvard Medical School states, “The study’s findings have important policy implications in an area of health policy that contributes to inequality of outcomes for low income, elderly Americans.”
Researchers are aiming to bring their findings before the eyes of policymakers who could change the system by creating “smart” enrollment systems for low-income seniors. The only state that currently does this is Maine. The creation of education campaigns or automated reminders about price changes, enrollment periods, and much more can be done to inform and educate low-income older adults in finding plans that actually fit their needs.