In response to 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.  Many of these proposals include 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 8 years, to 2024. 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 are on the table once again.

Full report: Comparison of Medicare Provisions in Deficit and Debt Reduction Proposals (PDF | 373 KB)

The Kaiser Family Foundation. (2011). Comparison of Medicare provisions in deficit and debt reduction proposals.