case study 3 pages 2

case study 3 pages 2


You are chief of staff to your brother-in-law, Representative Howard Hughes, who was recently elected to fill out a term in Congress.

He has been asked to participate in a panel discussion on the Medicare funding crisis. You have been asked to prepare a paper for him. The panel is asked to respond to a proposal for reducing Medicare expenditures by adding Part X to the current Part A – Hospital coverage, Part B – Outpatient coverage, Part C – Managed care, and Part D – Prescription drug coverage. What would Medicare Part X contain?

The following key questions must be addressed in the paper.

  • Define the coverage element(s) for the proposed Medicare Part X.
  • Provide detailed explanations of costs and benefits and related economic principles to support the proposed Medicare Part X.
  • Identify how the proposed Medicare Part X will be funded.
  • Include a section entitled “Contingency Planning” on how your Medicare Part X recommendation(s) would or would not change if a new federal law was passed that required all individuals over age 65 to purchase long-term care insurance for assisted-living and nursing home (i.e., skilled nursing facility) services. Be sure to include rationale and justification.


A quality case analysis will include a cover page and proper citations and references. Paper Format: Word document in APA or MLA format, double spaced.


The following key questions must be addressed.

  • Is Medicare in a state of crisis?
  • Are radical measures necessary to preserve the program?
  • How is Medicare funded now?
  • Why do older adults feel that Medicare is an insurance program and not a welfare program?
  • Is this perception accurate?
  • Should there be a Medicare program at all?
  • Why should the government be involved in providing insurance to older adults?
  • Does Medicare have detrimental effects on the market for healthcare or on the market for health insurance?
  • Are these economic effects offset by the positive effects of the Medicare program for older adults?
  • What about the positive effects of caring for older adults for society?
  • Are there any externalities here?


The memo will be properly subdivided into the above required headings and subheadings (bold and in caps). – Problem Identification – Situation Analysis – Solution Remember, the goal is not to find the solution but rather to examine the case and practice analyzing and solving real-world problems from a healthcare management perspective.


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