CBO: Federal health spending to slow over next decade

Share this article:
Poor oversight allows nursing home workers to plunder residents' trust funds, investigation finds
Poor oversight allows nursing home workers to plunder residents' trust funds, investigation finds

Federal spending growth in Medicare and Medicaid is projected to slow down over the next 10 years, according to a Congressional Budget Office report.

Government outlays for Medicare will add up to 3.7% of the gross domestic product in 2013, rising only to 4.3% of the GDP by 2022, the CBO predicts. These growth rate figures, which were released Wednesday, are significantly slower than the CBO had projected earlier this year.

The CBO's outlook for Medicaid also improved. In its report released this week, the CBO expects to see a $22 billion reduction in Medicaid spending over the next 10 years. The report attributes this drop to the Supreme Court's decision to make the Affordable Care Act's expansion of Medicaid optional for states.

Additionally, the CBO calculated the costs associated with Medicare's physician pay formula, a matter that is closely watched by long-term care groups. If Congress elects to keep Medicare physician payments at their current rate over the next decade, it would cost $245 billion more than if the scheduled 27% cut actually happens on Jan. 1. Historically, Congress has voted to prevent that cut from happening.

Click here to read the full CBO report.

Share this article:

More in News

Medicare rates could be adjusted for start and end of hospice care ...

Medicare payments could be adjusted to reflect how hospice services tend to be more intensive at the beginning and end, according to findings recently published by the Centers for Medicare & Medicaid Services Office of Information Products & Data Analytics.

Nursing home resident dies after allegedly being smothered by son

A terminally ill nursing home resident in Ohio has died after his son is alleged to have smothered him, according to police.

Medicare should pay for skilled nursing services without a qualifying hospital stay, experts tell Senators

Medicare should pay for skilled nursing services without ...

The time has come to eliminate hospital stay requirements for beneficiaries to qualify for Medicare coverage of skilled nursing services, experts told a Senate committee Wednesday.