Study Identifies Expected Burden on Health Providers

Boomers worried about paying for health care in retirement should take note. As boomers begin hitting 65 next year, Medicare will be under increasing strain. A new report by Sg2, a health care information company, found that health care providers will have to reduce costs by 14 percent, or $1,082 per case, just to “break even” if they’re paid at today’s rates.

“The health care leader of the future must recognize incremental and long-term cost saving strategies today, while still delivering cost-effective, quality care,” Michael Sachs, chairman and CEO of Sg2, said in a press release.

Sachs added that providers of all sizes must understand the financial implications of the swelling Medicare population, and urged providers to create a clinically integrated framework.