The Boards of Trustees for Medicare and the Centers for Medicare and Medicaid Services have released the yearly reports to Congress on the financial operations and actuarial status of Medicare, according to a news release by CMS.
According to the report, although the program's financial health is not worse than it was last year, Medicare's deficit of more than $30 trillion could snowball into a $39 trillion debt future generations could possibly inherit if nothing is done to remedy the issue soon. Trust fund surpluses that are to begin in 2014 can redeem some of these shortfalls, but the asset balance would fall below the Trustee's recommendations.
"If Congress continues to override the statutory decreases in physician fees, and if the reduced price increases for other health services under Medicare become unworkable and do not take effect in the long range, then Medicare spending would instead represent roughly 11.0 percent of GDP in 2084. (This compares to 11.4 percent as shown in last year's report under the prior law.) Growth of this magnitude, if realized, would substantially increase the strain on the nation's workers, the economy, Medicare beneficiaries, and the Federal Budget," the report says.
Read more about the Trustees' report on the Medicare financial status.
Read other coverage about healthcare reform:
- 4 Predictions on How Reform Will Affect ASCs by Dr. Ken Pettine
- $16B in Medicaid Funding for States Passes Senate, Goes to House
- ACOs, Reduced Readmissions, Other Reforms Would Save Medicare $418B by 2019
According to the report, although the program's financial health is not worse than it was last year, Medicare's deficit of more than $30 trillion could snowball into a $39 trillion debt future generations could possibly inherit if nothing is done to remedy the issue soon. Trust fund surpluses that are to begin in 2014 can redeem some of these shortfalls, but the asset balance would fall below the Trustee's recommendations.
"If Congress continues to override the statutory decreases in physician fees, and if the reduced price increases for other health services under Medicare become unworkable and do not take effect in the long range, then Medicare spending would instead represent roughly 11.0 percent of GDP in 2084. (This compares to 11.4 percent as shown in last year's report under the prior law.) Growth of this magnitude, if realized, would substantially increase the strain on the nation's workers, the economy, Medicare beneficiaries, and the Federal Budget," the report says.
Read more about the Trustees' report on the Medicare financial status.
Read other coverage about healthcare reform:
- 4 Predictions on How Reform Will Affect ASCs by Dr. Ken Pettine
- $16B in Medicaid Funding for States Passes Senate, Goes to House
- ACOs, Reduced Readmissions, Other Reforms Would Save Medicare $418B by 2019