The Baby Boomers: Implications for the Healthcare System and Medicare

1
The Baby BoomersImplications for
theHealthcare System and Medicare

• Jim Riopelle, M.D.
• Chairman/CEO
• GeriMed of America, Inc.
• May 24, 2002

2

• Background on Current Medicare Situation
• Look at Boomers
• Implications for Future

3

• 34 Million Americans are 65
• 12.7 of population using 25 of healthcare
• 50 of Medicare spent in last six months of
  life
• 80 population is most rapidly growing (by )

4
2002

• Medicare Choice 2 Rate Increase
• 50 reduction in the number of health plan
  offerings in the last 4 years
• Medicare Fee for Service 5.4 Payment Decrease
• Regional areas with serious access problems for
  elderly
• Pharmacy costs are rapidly increasing
• 74 of all pharmacy used by those 50 years of
  age

5
2002 Contd

• Seniors have the lowest poverty rates
• 70 of wealth held by those 50
• Historically people have voted their age
• 30 of 30 y/o
• 50 of 50 y/o
• 70 of 70 y/o

6
The Boomers

• Defined as those born from 1946 thru 1964
• Longer life span
• Bill Geist in 1997 book The Big 5-OH stated
  another Boomer turns 50 every 7 seconds
• In 1964 we represented 40 of the U.S. population
• 76 million Boomers today we are the economy

7
The Boomers Contd

• 80 of Boomers surveyed say they want to keep on
  working at least part time
• Recent AARP poll 35 want to work for
  interest/enjoyment during retirement years -23
  cited need for income
• 1996 12 of people 65 worked

Anna Bray Duff, Boomers Redefining Retirement
Investor Business Daily, June 22, 1998
8
The Boomers Contd

• The generation that dropped acid to avoid reality
  now drops antacids to deal with it
• 1996 Only 16 have incomes 50K
• Men born between 1950 59 have 86 of their
  fathers income at comparable ages

Life Magazine Special Issue June 1996
9
How Weve Aged

• Then Long Hair
• Now Longing for Hair
• Then A Keg
• Now An EKG
• Then Acid Rock
• Now Acid Reflux
• Then Moving to California because its cool
• Now Moving to California because its hot

10
How Weve Aged Contd

• Then Watching John Glenns historic flight with
  your parents
• Now Watching John Glenns historic flight with
  your kids
• Then Trying to look like Marlon Brando or
  Elizabeth Taylor
• Now Trying not to look like Marlon Brando or
  Elizabeth Taylor

11
How Weve Aged Contd

• Then Seeds and Stems
• Now Roughage
• Then Popping pills, smoking joints
• Now Popping joints
• Then The Presidents struggle with Fidel
• Now The Presidents struggle with fidelity
• Then Paar
• Now AARP

12
How Weve Aged Contd

• Then Killer Weed
• Now Weed Killer
• Then Hoping for a BMW
• Now Hoping for a BM
• Then The Grateful Dead
• Now Dr. Kevorkian
• Then Getting out to a new, hip joint
• Now Getting a new hip joint

13
Implications for The Future

• There will (and must) be fundamental changes
• Vote your age
• Politicians will respond
• Housing
• Main Floor Master Bedroom
• Assisted Living
• Senior Communities
• Transportation
• Vacation/Travel

14
Implications for The Future Contd

• Healthcare

Longer Lifespan

• Linear life paradigm will become obsolete
• Education/Work/Leisure-Retirement

• Cyclic life paradigm
• Older people going back to school
• Re-inventing ourselves

• Managing Chronic Diseases Diabetes, Arthritis

15
Implications for The Future Contd

• Empowered Patient
• Internet Research
• Wont Wait
• LTC
• 50 spend some time LTC setting now
• Insurance
• Biotechnology
• New Body Parts
• Gene Specific Drug Rx

16
Implications for The Future Contd

• Financing
• More Personal Responsibility
• Scientific Funding for Research
• Train Geriatric Providers
• Managed Care
• Align incentives
• Delay Entitlements
• Palliative Care

17
In Closing

• Many challenges some unknown
• Solution is up to us I believe we can (and
  will) succeed