If the federal debt continues to grow at current rates, it is on track to be almost twice the size of the U.S. economy by 2037, driven largely by entitlement spending on baby boomers, a new analysis projects.
The president's special debt-reduction 'super-committee' will hold a hearing Tuesday to review proposals, some of which include big healthcare-funding cuts. The secretive, bipartisan committee, which comprises lawmakers from both chambers of Congress, has been atypically tight-lipped about its ongoing discussions. Recommendations on how to eliminate more than $1 trillion in federal spending will be due no later than three weeks after Tuesday's hearing. A report earlier this week said panel Democrats are nearing agreement on a proposal that would cut about $400 billion in Medicare funding. However, details about where the cuts would be made, like many aspects of the panel's deliberations, were not specified. Long-term care providers have prepared themselves for potential 2% "across the board" cuts but fear they will be targeted for even more.
Long-term care providers have plenty at stake when it comes to the issue of hospital readmissions, and working to reduce them. As debt ceiling talks and federal budget woes raise the specter of additional cuts to programs such as Medicare and Medicaid, it behooves LTC providers to seek creative solutions to curb healthcare spending and retain revenue.