CBO: Medicare, Medicaid Spending Estimates Lowered

Lower spending projections to Medicare and Medicaid over the next decade will help lessen the federal deficit, according to an updated report from the Congressional Budget Office (pdf).

The CBO released an updated outlook of the federal debt from its March 2012 projections. The report indicated that Medicare and Medicaid outlays would actually increase by $163 billion between 2013 and 2022 — $136 billion, or 2 percent, for Medicare and $27 billion for Medicaid. Those increases were due to lower productivity expectations and higher projected prices for labor, goods and services.

However, the CBO believes several technical revisions to Medicare and Medicaid will offset those increased expenditures. For example, the CBO projects that Medicaid spending will be $325 billion lower between 2013 and 2022, with $288 billion of that amount stemming from the Supreme Court's decision to make the Medicaid expansion optional. "As a result of the Court's decision, CBO now anticipates that some states will not expand their Medicaid programs at all or will not expand coverage to the full extent authorized by the [Patient Protection and Affordable Care Act]," according to the report.

The CBO also said spending for Medicare will decrease by $19 billion for 2012 and $169 billion over the next decade due to lower-than-expected spending for Part A, Part B and Part D. Between Medicare and Medicaid, the revised outlook projects $494 billion in lower spending totals.

More Articles on Federal Healthcare Expenditures:

Healthcare Reform's Cost Precipice: Q&A With Dr. David Gruber of Alvarez & Marsal

Report: Curbing Administrative Costs Could Save Healthcare $40B Annually

CBO: Healthcare Spending to Dominate Federal Budget

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars