CongressIf President Barack Obama and Congress cannot reach an agreement on the fiscal cliff…it would likely send the country back into recession…and ultimately, it could hurt your physical and emotional health.

Financial health and physical health can go hand-in-hand. In these trying economic times it is important to make sure your finances are secure, not only for the health of your bank account, but for your physical health as well.  

This issue was recently taken up in a CNN article titled, “10 ways falling off the fiscal cliff could hurt your health.”

According to the Congressional Budget Office, if the fiscal cliff is not avoided, the scheduled reduction in Medicare’s payment rates for physicians will lower Medicare spending by $11 billion. This overall spending reduction results in a 2% cut in existing Medicare budgets. Consequently, these reductions will mean a decrease of available Medicare funds to help pay for essential healthcare needs.

In many instances, Medicare funds are used to pay for vital services like nursing home and hospice care, which are crucial to the wellbeing of our elderly population. Reduced Medicare funds mean reduced payments to health care providers which, in turn, may cause hospitals and care providers to stop accepting Medicare patients.

As we prepare for the possible approach of the fiscal cliff, a consultation with an experienced elder law attorney can ensure that your access to healthcare is protected. An experienced elder law attorney also may help file an appeal in the event your health care provider denies your Medicare payments. 

Please visit our website for information on elder law and estate planning issues, and sign up for our free monthly e-newsletter.  The archive on our website contains numerous blog posts on these legal areas as well.

Reference: CNN (November 30, 2012) “10 ways falling off the fiscal cliff could hurt your health” 

Congressional Budget Office (May 30, 2012) “Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013