Medicare at the Center of Recent Budget Proposals

The Kaiser Family Foundation (KFF) recently updated an issue brief comparing Medicare cost-savings proposals in the budget plans provided by President Obama, the Senate and the House. In 2012 and 2013, Medicare had the lowest rate of growth in spending since 2000. Over the next 10 years, Medicare spending is projected to grow at a slower rate per capita than private insurance. Still, there is ongoing talk to reduce Medicare spending, including by shifting added costs to people with Medicare. In the issue brief, KFF looks at the most recent budget proposals and breaks down how each would address reductions in Medicare spending. The proposals include: • Raising in the age of Medicare eligibility; • Reforming private plan payment, including premium support and competitive bidding; • Increasing Part B and Part D premiums; and • Increase Medicare cost sharing for beneficiaries. In response to proposals that seek Medicare by shifting costs to beneficiaries, the Medicare Rights Center outlined several proposals to save costs, without worsening the economic and health status of people with Medicare. “Build on What Works: Medicare Cost Savers,” outlines solutions that eliminate wasteful spending and promote the delivery of high value care. The cost savers outlined in Medicare Rights’ latest fact sheet do not increase costs or decrease benefits for the 50 million older adults and people with disabilities who rely on Medicare. These cost savers include: • Restoring drug rebates for low-income Medicare beneficiaries; • Introducing a public Medicare drug benefit; • Maximizing the use of generic prescription drugs; • Creating a public Medicare supplement; • Eliminating wasteful overpayments to Medicare Advantage plans; • Expanding the competitive bidding program; and • Advancing innovative delivery and payment system reforms.