There have been many projections of huge deficits in the health care industry; with dire warnings abounding the demand was for cuts in the social security Medicare and Medicaid spending. Strangely though the health care spending slowed down and more so in Medicare where less than $1000 was spent per beneficiary - less than what was projected 4 years back by Congressional Budget Office.
The federal government has deficits but they are lower than expected. Eventually the expenses will rise up but the long term fiscal gap looks to be at more manageable levels. There is a slow down on Medicare spending and could be explained by health cost slow down. As Medicare is a government program it should not bear the effects of recession, so actually the spending has stabilized.
AdvertisementPresident Barack Obama has been accused of failing to take on entitlement spending, as people assumed he could negotiate with the Republicans. This proved futile as Republicans dismissed all cost control measures - including the Affordable Care Act as worthless. raising the age for Medicare eligibility would have hardly made any difference and anyway Medicare spending is much less than expected.
According to the Budget Office - privatization of running Medicare has not actually made much of a difference and found that Medicare costs are low due to low enrollments and absence of blockbuster drugs are the reasons for low cost spending in Medicare.
Health insurance premiums were supposed to have risen according to predictions, the premiums may rise only after next year, and the rise will be modest.
For many years now pundits and politicians have re-iterated that guaranteed health care is an impossible dream for Americans and providing health covers to the uninsured was supposedly an impossible dream. Incremental steps taken to improve incentives and reduce costs, it will be possible to cover the uninsured people.
All Americans can have access to health care.
Paul Krugman, September 2014
Hannah Punitha (IRDA Licence Number: 2710062)