The Trustees of the Social Security and Medicare programs released their annual reports yesterday. Read the coverage and claims contained therein carefully, with an eye for two key moments of spin: (1) the fiscal news is good and the programs are fine, and (2) Obamacare has improved the outlook for Medicare. Instead, remember this: (3) both programs are fiscal toast and need immediate reforms to continue to provide future seniors with an appropriate safety net.
Senate confirmation hearings begin this week for Sylvia Matthews Burwell–currently the Director of the Office of Management and Budget, and the President’s pick to run the Department of Health and Human Services (HHS). Burwell would replace outgoing HHS Secretary Kathleen Sebelius, who has held the office since April 2009. Ms. Burwell should move to make HHS a more transparent, accountable organization under her leadership.
The Fed released its beige book — a summary of on-the-ground observations in each of the 12 Federal Reserve districts — yesterday. The summary was simple: "Reports from the twelve Federal Reserve Districts suggest economic activity increased in most regions of the country since the previous report.
Douglas Holtz-Eakin Discusses the Future of Medicare on Fox Business
In January the Center for Medicare and Medicaid Services (CMS) proposed new regulations for Medicare Part D that would limit plan options, restrict competition, and interfere with plans’ negotiations. Under the guise of ordinary rulemaking, the proposed regulations are a fundamental contravention of the policy principles that have made Part D a popular, low-cost, and innovative program. If implemented, the taxpayer will face higher budget costs, millions of seniors will lose their preferred plans, benefits will diminish, and premiums will rise.
At its inception, Medicare was designed to be a hospital insurance plan for the elderly, motivated by expensive hospital stays that neither the hospitals nor their aging patients could afford.
The Recovery Audit (RA) Program exists to detect and correct improper claims to the Medicare program. The contracted firms are paid a portion of their recoveries, so the program delivers savings to the Medicare Trust Fund at no cost.
Medicare spending encompasses an unsustainable 16 percent of the federal budget. Over the last decade (2000-2011), Medicare spending per capita grew at a rate double that of per capita GDP growth.
December 10th is the expected date on a vote on the final rule for the long awaited language of the “Volcker Rule.” The Wall Street Journal reports that “U.S. regulators are expected to approve next week a toughened version of the Volcker rule, ushering in an era of stricter oversight for Wall Street with restrictions on the trading banks can do with their own money.”