CMS NEWS
FOR IMMEDIATE RELEASE
July 22,
2015
Contact: CMS Media Relations
(202) 690-6145 | CMS
Media Inquiries
Medicare Trustees Report shows continued slow cost
growth
Today, the Medicare Trustees
projected that the trust fund that finances Medicare’s hospital insurance
coverage will remain solvent until 2030, unchanged from last year, but
with an improved long-term outlook from last year's report. Under this
year’s projection, the trust fund will remain solvent 13 years longer than the
Trustees projected in 2009, before the passage of the Affordable Care Act.
“Growth in per-Medicare enrollee
costs continues to be historically low even as the economy continues to
rebound. While this is good news, we cannot be complacent as the number of
Medicare beneficiaries continues to grow,” said Andy Slavitt, Acting
Administrator of the Centers for Medicare & Medicaid Services (CMS).
“That’s why we must continue to transform our health care system into
one that delivers better care and spends our dollars in a smarter way for
beneficiaries so Medicare can continue to meet the needs of our beneficiaries
for the next 50 years and beyond."
Per-enrollee Medicare spending
growth has been low, averaging 1.3 percent over the last five years. In 2014,
Medicare expenditures were slightly lower for Part A and Part D, and
higher for Part B than previously estimated. Over the next decade, and
partially due to the cost-containment provisions in the Affordable Care Act,
per-enrollee Medicare spending growth (4.2 percent) is expected to continue to
be lower than the overall growth in overall health expenditures (5.1 percent).
In 2014, Medicare provided health
insurance coverage to 53.8 million people. Total Medicare expenditures were
$613 billion, and income was $599 billion. The average Medicare benefit per
enrollee was $12,432, about 2 percent higher than last year. Medicare outlays
in 2014 were slightly lower for Part A and Part D, and higher for Part B
than previously estimated.
While Part B premiums will be
finalized later this year, approximately 70 percent of beneficiaries are expected
not to see a premium increase in 2016 because it is projected that there will
be no cost-of-living increases in Social Security benefits. The remaining 30
percent of beneficiaries would pay a higher premium based on this projection.
These include only individuals who enroll in Part B for the first time in 2016;
enrollees who do not receive a Social Security benefit; beneficiaries that are
directly billed for their Part B premium; and current enrollees who pay an
income related higher premium. Decisions about premium changes will be made in
October and depend on a variety of factors.
The Medicare Trustees are Health
and Human Services Secretary Sylvia M. Burwell, Treasury Secretary and Managing
Trustee Jacob Lew, Labor Secretary Thomas Perez, and Acting Social Security
Commissioner Carolyn Colvin. Two other members are public representatives who
are appointed by the President are Charles Blahous III and Robert Reischauer.
CMS Acting Administrator Slavitt is designated as secretary of the board.
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