Tuesday, February 12, 2013

2020 Medicare/Medicaid Spending Seen As 15% Less Than Projected Three Years Ago

Slower Growth Of Health Costs Eases Budget Deficit by Annie Lowrey.  The New York Times.  February 11, 2013.

The rate of spending growth is at its lowest rate in decades.  Significantly this rate has now continued for four consecutive years.  While there is no complete understanding of the reasons for the decline, it seems that the recession, changes in how healthcare is delivered, and incentives in the Affordable Care Act (Obamacare) have all contributed.  If this trend continues it promises to have significant impact on the U.S. long-term fiscal situation while not solving the difficulties completely.

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