Did you know that, contrary to what some believe, Medicare’s financial status has improved since the Affordable Care Act (ACA) passed in 2010? And that repealing the ACA’s provisions related to Medicare would actually increase program spending and worsen the financial outlook for the program? The overall rate of Medicare program spending growth has decreased from 9% in the years 2000 to 2010, to 4.4% in the years 2010-2015, after the ACA was enacted. Medicare per capita spending also decreased from 7.4% to 1.4% during those same time periods. This is just one example reviewed in Kaiser Family Foundation’s article, “10 Essential Facts About Medicare’s Financial Outlook“.
The article also points out that the Medicare Hospital Insurance (Part A) trust fund gained an additional 9 years of solvency with the passage of the ACA. In addition, according to the Congressional Budget Office (CBO), repealing the ACA in its entirely would add $802 billion to Medicare spending over 10 years. Medicare spending would rise primarily as a result of repealing the ACA’s reductions to payments to providers and Medicare Advantage plans. Such an increase in Medicare spending would likely lead to higher premiums, deductibles, and cost sharing for beneficiaries, and would again accelerate the projected insolvency date of the Medicare Hospital Insurance trust fund.
To learn more of the facts, see “10 Essential Facts About Medicare’s Financial Outlook“.