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Financing Center of Excellence

Explaining Health Care Reform: How Might a Reform Plan Be Financed?

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Topics: Cost-effectiveness | Health Care Reform | Legislation (National) | Medicaid | Medicare | Spending

This report explains the likely sources of added costs under reform, the types of financing measures being considered, and some of the key questions likely to be addressed by how a plan is financed.

From the report: 

One of the key challenges in enacting a health care reform plan is how to finance it among government, employers, and individuals. Of particular concern to policymakers is what effect a health reform plan would have on government spending and the federal budget. President Obama and Congressional leaders have said that any health reform plan should not add to the budget deficit over a 10-year period. This means that the added federal budgetary spending resulting from reform would be fully offset by new revenues or savings in existing government obligations (such as Medicare and Medicaid). Some have suggested that beyond this 10-year window, reform could actually help to reduce the projected budget deficit over time, with savings and new revenues exceeding the costs associated with reform.

Full report: Explaining Health Care Reform: How Might a Reform Plan Be Financed? (PDF | 260.16 KB)exit disclaimer small icon

The Henry J. Kaiser Family Foundation Focus on Health Reform. (2009). Explaining health care reform: how might a reform plan be financed?


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