Today, the Supreme Court announced its ruling on the constitutionality of the 2010 healthcare law, the Patient Protection and Affordable Care Act (PPACA). In a 5-4 decision, the Court upheld the individual mandate in the law as within Congress’s power of taxation.
Today, CRFB released its newest paper outlining options for controlling federal health care costs. Federal health spending is projected to grow at a high rate and threaten the fiscal health of our economy. According to CBO, net federal health care spending will rise from $750 billion in 2012 to $1.6 trillion in 2022, about 4.9 percent and 6.7 percent of GDP respectively. Over the longer term, it will rise even further--possibly to 9 percent of GDP by 2035 and 11 percent by 2050.
Politicos, policy wonks, and citizens will all be eagerly waiting Monday for a possible Supreme Court’s ruling on the ACA. Speculation in particular is focus on whether the individual mandate provision will survive, and what that would require from lawmakers as a response. But lost in all of the coverage is the unsustainable growth in our nation’s health care costs.
On Monday, we presented a budgetary analysis of the effect the Supreme Court decision on the Affordable Care Act could have on the budget. Naturally, we relied on CBO for the estimates, but in the case of eliminating the individual mandate alone, there have been a variety of estimates about what could happen.
It is no secret to those following the news that the Supreme Court will soon make a decision on the constitutionality of pieces of the Affordable Care Act. There have been many discussions of the health policy implications of the decision, which are obviously very important. However, given the name of our organization, we'll discuss the budgetary implications of the possible rulings.
The Medicare Payment Advisory Commission (MedPAC) has released its June 2012 report, detailing ways in which Congress can improve Medicare to better control costs and improve care.
Actuaries at the Center for Medicare and Medicaid Services have published a new report detailing their projections for health care spending growth from 2011 to 2021. The growth rates they project may be good news for the economy and the budget as well if they pan out.
In our recent analysis of CBO's Long-Term Budget Outlook, we elaborated on how the overall federal debt is on an unsustainable path. Just twelve years from now, under CBO’s Alternative Fiscal Scenario (AFS), debt will surpass 100 percent of GDP, and by 2038, it will exceed 200 percent. Driving this debt growth are the increasing costs of Social Security and especially Medicare and Medicaid.
Critics of CBO scoring like to cite past predictions that widely missed the mark. Sometimes, too, critics compare apples to oranges, and that is the case with the 2010 Affordable Care Act (ACA) again this week. As reported by National Journal, Congressman Phil Roe (R-TN) claims in referring to CBO's report on the fiscal cliff, "Remember that the CBO estimated two years ago that the Affordable Care Act would be $900 billion, and 24 months later it’s $1.7 trillion.
Yesterday, Medicare trustee Charles Blahous and former chief economist for Vice President Biden Jared Bernstein had a debate about the fiscal consequences of the Affordable Care Act (ACA). The event, hosted by e21 at the National Press Club, discussed Blahous's recent paper on the ACA that claimed the law would increase the deficit, contrary to CBO projections.