Unsustainably high healthcare costs paint bleak long-term budget outlook

Share this article:
Financial outlook is grim for not-for-profits, analyst says
Financial outlook is grim for not-for-profits, analyst says

Despite curtails in federal healthcare costs, the state of the nation's budget remains grim, a government report finds.

Passage of the Affordable Care Act and the Budget Control Act of 2012 improved the budget outlook, but neither are enough to fix the gap between spending and revenue, according to a report by the Government Accountability Office.

“While the [Budget Control Act] improved the outlook, it did not eliminate the longer-term challenge, in part because it did not focus on the fundamental drivers of the government's future fiscal imbalances — a structural gap between revenues and spending driven by rising health care costs and demographics,” the report states.

Cost-control measures in the ACA will minimize the growth in money spent on federal health care. However, Medicare Trustees, the Congressional Budget Office and the Centers for Medicare & Medicaid Services actuary remain concerned about the sustainability of certain health care cost-control measures over the long term, the report states.

“For example, they note that reductions in physician payment rates scheduled to occur under current law have routinely been overridden,” the report states.

Click here to read the full report.

Share this article:

More in News

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.