Her family, who also say a staff member advised them to remove her, is now paying for her care at a private nursing home.

BBC: Essex

"This decision was taken following the minister's decision to reduce statutory residential care, and will not affect the large number of people the trust has placed in private residential care and nursing home care, " the statement said.

BBC: Elderly woman with walking stick

Another important reason is that the average dollar amount per Medicare claim is much higher than for private insurance because the elderly and disabled use hospital and nursing home services far more than do children or non-elderly adults.

FORBES: 5 Myths in Steven Brill's "Bitter Pill" -- Part 2