Changing the rules surrounding Medicare Advantage planpay rates could stave off Medicare insolvency by 18 months, an actuary with theCenters for Medicare & Medicaid Services told a House subcommittee Tuesday. 

Recent reports have suggested that Medicare will go brokein early 2019, but paying MA plans at the same rate as traditional Medicarewould reduce overall Medicare spending. That would extend the program by a yearand a half, said Richard Foster, actuary for CMS. He testified before the HouseWays and Means Health Subcommittee. 

Foster also told the subcommittee that the 10-year costprojection for the Medicare prescription drug benefit is 37% less than analystshad originally anticipated. That is due mostly to lower drug spendingestimates, lower-than-expected enrollment and increased competition among drugplans. Members of the subcommittee said they would like to see thesecompetition-based reforms applied to other aspects of the Medicare programto decrease spending.