Image from Wikimedia.

Throughout 2010, senior citizens are expected to continue using cash advances to fund growing health care expenses. Although health care is a hot topic in the U.S., there is still a long way to go regarding sorting it out. The senate just turned away a republican initiative to eliminate long-term care insurance that helps seniors and the disabled. The party fell short of their bid to get rid of the program on a 51 to 47 vote.

The late Senator Edward Kennedy was the main supporter of the insurance bill, referred to as the CLASS act. CLASS stands for Community Living Assistance Services and Supports Act. Despite Senator Kennedy’s push, the bill has been up for deliberation for decades. In this act, workers would be required to contribute a monthly premium during their work years into the program. If they suffer an injury that renders them disabled, they would receive a minimum cash benefit of $50 daily. The money could be put toward supplies, equipment, home improvements, home health care or daily nursing home costs.

Critics of the CLASS act speak out

Critics of the CLASS act believe it to be a thinly veiled way for the government to tax consumers more. Senator John Thune has spoken against the CLASS act and said that it is “the same old Washington, same old smoke and mirrors, same old games… We are locking in future generations to deficits and debts as far as the eye can see.” He believes the government, that is already under huge debt, is only building a way to create even more debt that eventually tax payers will have to pay.

CLASS act still has its supporters

On the other hand, there is also a strong backing for the CLASS act. Senator Dodd said, “It is a solid program that can make a huge difference for millions of Americans, allowing them to lead independent lives with dignity.” Supporters of the act cite the ability to defray huge costs of nursing care as a major benefit. On average nursing homes cost $70,000 a year, and seniors who need health nursing home care have to run out of their savings before they can apply for coverage from Medicaid. It also takes time to get Medicaid and some senior citizens are running out of personal funds before their coverage begins. Many seniors have to fill the gap by turning to family aid, cash advances and charity organizations.

Overall the CLASS act would put them at ease because it would automatically become a safeguard when they need it. In addition, Medicare only covers temporary nursing home residencies, and it’s already on the chopping block for major cuts in 2010. On the other hand, the act would be consistent throughout the patient’s lifetime of care and depend on how much they paid into the fund.

Seniors in need of future aid

Regardless of whether or not the CLASS act is approved, senior citizens need some vehicle that will carry them through their post-employment health care. Senator Dodd added, “Health care for the elderly needs to be sorted out in a manner that is efficient and effective.”  Most seniors are at the mercy of using up savings, using cash advances and relying on family to get through their later years.

Apply here for a Cash Advance

A new type of business has sprung up as uninsured Americans desperately try to find ways to afford the medical care they need. Planet Hospital and other firms like it aid people with medical travel planning.

They are like travel agents, but the purpose of the trip is to get a specific medical procedure at the best price. In another country.

Plight of the uninsured

Sandra Giustina is a good example of how this can help people in need of medical care. She needed surgery for an atrial fibrillation. She lives in Las Vegas, and the going rate for the procedure at U.S. hospitals was about $175,000. She knew she couldn’t come up with that kind of money and would never be able to pay off a personal loan in that amount.

She started looking into how much the procedure would cost in other countries. She was able to get the surgery she needed for less than $10,000, including travel costs, in India.

A growing trend

Experts say 6 million Americans will leave the country for the purpose of medical procedures next year.

“Medical care in countries such as India, Thailand and Singapore can cost as little as 10 percent of the cost of comparable care in the United States,” according to a 2008 Deloitte study.

Medical travel agents

About 200 businesses similar to Planet Hospital have sprouted in the U.S. Medical travel agents book travel plans, schedule phone interviews with surgeons and a company representative meets with the patient in the airport of the destination country.

“We find the best possible surgeons and deliver their service to patients safely, affordably and immediately,” said Rudy Rupak, president of Planet Hospital. “No one should have to choose between an operation to save their life or going bankrupt.”

Planet Hospital branches out

Planet Hospital works with clients worldwide. Some of their customers are people in Africa or South Asia who don’t have access to medical care. Patients from Canada and Europe travel because they are tired of waiting for treatment.

President Barack Obama’s presidential address last night was aimed at instilling hope in the American people and inspiring confidence in their leader. That speech didn’t come a moment too soon.

Obama plans to unveil his plans for the nation’s budget tomorrow. Among those plans, he’d like to dedicate $634 billion over the next 10 years to a health care “reserve fund” that would help pay for overhauling the country’s health care system.

The process begins

Obama’s ultimate plan is to provide universal health coverage. The first step in his 10-year plan is to start a dialogue with Congress on what to do about the 48 million uninsured Americans.

Congress has already approved $32 billion to expand coverage for children in low-income families and $19 billion fund computerization of health records.

A pricey system

Officials called the fund a “down payment” for health care reform. Experts say the cost of paying for all uninsured Americans to have access to health care could easily exceed $1 trillion over 10 years.

Part of the problem is the high cost of health care.

Some experts say 30 percent or more of what the nation spends may be going for tests and treatments of little or no lasting benefit.

Hurting families

Obama says medical bills are a leading cost of individual bankruptcy. The cost of and spending on health care have both continued to rise, even as the economy shrinks.

White House officials say slowing increases in the cost of health care and ensuring everyone has coverage is essential, in the long run, to solving the nation’s budget problems.

More budget requests

Obama’s budget also seeks to extend the $400-per-year tax credit to workers. It also proposes increasing the top income tax rate from 35 percent to 39.5 percent. The proposed budget would also update the alternative minimum tax, which reportedly would add $150 billion to the deficit by 2013.