Medicare policies discourage aging in place

According to health policy journal Health Affairs, “An estimated 75-90 percent of disabled, older, community-dwelling adults use some form of assistive technology. Moreover, evidence suggests that such technology might be more efficacious than personal care in reducing functional limitations, might reduce reliance on personal care and might slow functional decline and lower health-related costs.”

In 2005, a study by a group of prominent economists found that the Medicare program pays $10,770 a year less for beneficiaries with power mobility equipment because they need fewer hospitalizations and emergency room visits associated with falls. “The largest net savings appear in the category of inpatient expenditures,” wrote the economists. “Significant Medicare savings are also reported for outpatient, home healthcare and physician services expenditures. The combined reductions in these Medicare expenditures more than offset the increase in durable medical equipment expenditures for those receiving Medicare funding for powered mobility.”