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Category: Bears Chat

Medicare cost growth has slowed, and is already BELOW post-Simpson-Bowles cut level…

Surprise, surprise: the GOP used overly-pessimistic estimates, in order to justify ending Medicare

The biggest news was the “baseline”—defined as the CBO’s projections of federal revenues and spending assuming current laws remain unchanged. As has happened annually since 2010, the CBO lowered its forecast of federal health spending growth, independent of any policy action. Medicare and Medicaid costs combined are expected to be 15% lower in 2020 than was forecast just 3 years previously. In dollars, the savings for Medicare over the next 7 years are nearly $400 billion, about two-thirds as much as the revenue from the expiration of some of the high-income tax cuts that happened this January.