IBJNews

Reform to accelerate health care costs

Back to TopCommentsE-mailPrintBookmark and Share

The recently passed health reform law would add about 1 percent per year in additional cost growth, according to a new analysis by the Medicare program’s chief actuary.

Richard Foster estimated the new law would raise overall health care spending by an additional $311 million over current law—a higher estimate than Foster made in December when he first examined the legislation.

The bill would insure an additional 34 million Americans, Foster estimated, about 18 million of them through the federal-state Medicaid program. Also, the law’s cuts to Medicare spending would push back the insolvency of the program by 12 years to 2029—although they appear to do so by double-counting those savings, Foster wrote.

One other problem with the lower Medicare payments is that it will likely push 15 percent of hospitals into the red by 2019. Also, patients covered by Medicare and Medicaid might have trouble finding doctors, at least in the law’s early years, as doctors raise prices or cater to patients with private insurance. Foster called those scenarios “plausible and even probable.”

To read Foster’s full report, click here.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT