Preserving Medicare: A Practical Approach to Controlling Spending

Brief

Preserving Medicare: A Practical Approach to Controlling Spending

September 19, 2011

Abstract

Some of projected Medicare spending growth over the next decade (6.5 percent per year) can be explained by the retirement of the baby boomers; moreover, provisions in the Affordable Care Act will reduce spending per enrollee to about 3.5 percent. We agree with the analysis of the Congressional Budget Office that concluded that privatization initiatives would actually increase health care spending and shift costs to beneficiaries themselves. We argue that it is possible to reduce Medicare spending growth further by selected policies such as increasing home health co-insurance, reforming cost sharing provisions, increasing premiums for beneficiaries earning more than 300 percent of the federal poverty line, increasing the age of eligibility, reducing fraud, and better management of Medicare's dual eligibles.

Research Area: 

Centers

Cross-Center Initiative

Cross-Center Initiative: 
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