Posted on January 10, 2011 18:10
Categories: Medicare
Topics: Medicare | Spending
On December 1, KFF released a brief examining the impact of various federal deficit reduction proposals on Medicare. The brief notes that, even with the national health care reform law’s Medicare spending growth reductions, Medicare spending still represents 15 percent of the federal budget and its share of spending is projected to continue increasing. The brief offers a side-by-side comparison of the deficit reduction plans’ effects on Medicare spending growth, premiums, cost-sharing, and eligibility. The brief also compares the plans’ effects on dual eligibles, Medigap coverage, and the Medicare Independent Payment Advisory Board (IPAB).
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 set of these proposals recommends reducing the growth in Medicare spending over time. Although the Patient Protection and Affordable Care Act of 2010 slowed the growth in Medicare spending by more than $400 billion between 2010 and 2019 and extended the life of the Medicare Trust Fund by 12 years, Medicare still accounts for 15 percent of the federal budget and is projected to grow over time due to rising health care costs and an aging population.
Full Report: Side-by-Side Comparison of Medicare Provisions (PDF | 236 KB)
Kaiser Family Foundation. (2010). Side-by-Side Comparison of Medicare Provisions.
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