On April 4, the Kaiser Family Foundation (KFF) released a brief comparing the Medicare provisions of various deficit reduction proposals.  KFF notes that the national health care reform law is projected to slow the growth in Medicare spending by over $400 billion between 2010 and 2019, extending the life of the Medicare Trust Fund by 12 years.  However, the authors acknowledge the need to address Medicare spending in deficit reduction plans, as the program constitutes 15 percent of federal outlays and is expected to continue growing.  The brief examines how the various plans would affect aspects of the program including: spending growth, Medicare eligibility age, premiums, cost sharing, dual eligibles, and prescription drugs.

From the report:  

In response to mounting concern about the nation’s rising debt and deficit, and increasing apprehension about the federal budget, prominent leaders and various commissions have come forward with recommendations to strengthen the economy and bolster the nation’s fiscal health. These proposals include both tax increases and spending reductions in discretionary programs, including defense, and in mandatory programs, such as Social Security, Medicaid, and Medicare.

Each of these proposals includes recommendations to reduce the growth in Medicare spending over time. These proposals come on the heels of the enactment of the Patient Protection and Affordable Care Act of 2010 which slowed the growth in Medicare spending by more than $400 billion between 2010 and 2019 – reducing the average annual growth rate from 6.8 percent to 5.9 percent during this 10-year period and extending the life of the Medicare Trust Fund by 12 years (from 2017 to 2029). Yet, with Medicare spending at 15 percent of the federal budget in 2010, and projected to grow both as a share of the federal budget and the overall economy due to rising health costs and an aging population, additional measures to reduce Medicare spending may be on the table once again.

Full Report: Comparison of Medicare Provisions in Deficit-Reduction Proposals (PDF | 189 KB)

Kaiser Family Foundation. (2011). Comparison of Medicare provisions in deficit-reduction proposals.