Medicare Costs to Double by 2017

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New CMS Report for 2008

[By Staff Writers]

According to a new CMS report, national health spending grew 6.7% last year, reaching $2.2 trillion overall. But, it is expected to hold steady over the next 10 years. 

Nevertheless, healthcare spending will account for 20% of GDP by 2017; if left unchecked.

Of course, more than a few health economists note that eliminating some Medicaid payment restrictions spiked hospital spending, but the sector is expected to see more growth in later years. 

Fueling Medicare growth dramatically will be baby boomers as they become eligible. Medicare spending is expected to reach $427.3 billion in 2007, ballooning to more than twice that amount, or $884 billion, in 2017, according to some CMS estimates [about 7.2% annually]. 

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Assessment

And so, what are your thoughts on this new report? Is this increase in GDP such a bad thing?

Conclusion

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2 Responses

  1. Enter the Recovery Audit Contractors

    Did you know that private companies are auditing medical records to determine if doctors erred when billing Medicare?

    If so, they may be required to return overpayments as more than $300 million was collected by the federal government – in three year and from just three states – according to Associated Press reports.

    Of course, a national rollout of “recovery audit contractors” will soon be monitoring health care providers in 19 more states beginning this spring. An additional five states will be audited in the Fall of 2008.

    The Office of Management and Budget [OMB] estimated that Medicare payment errors total about $10.8 billion a year. Yet, a report from the Centers for Medicare and Medicaid Services [CMS] showed that contractors reviewed about 930 million claims in Florida, California and New York during the program’s first 2 1/2 years, and identified errors in less than 0.2 percent of the claims.

    And so, why the disparity? Your thoughts are appreciated.

    William

    Like

  2. Mortality, Hospitalizations, Cost Has Decreased For Medicare Beneficiaries

    The Journal of the American Medical Association recently publihsed a study on the mortality, hospitalization, and expenditure trends for the Medicare population age 65+. Here are some key findings from the article:

    • All-cause mortality for all Medicare beneficiaries declined from 5.3% in 1999 to 4.45% in 2013.
    • The total number of hospitalizations per 100,000 people decreased by 8,344 from 1999-2013.
    • Hopitalizations in the last 6 months of life dropped from 131.1 to 102.9 per 100 deaths.
    • Inpatient expenditures per Medicare fee-for-service beneficiary dropped from $3290 to $2801.
    • 70.5% of beneficiary deaths required 1 or more hospitalizations in 1999, compared to 56.8% in 2013.
    • Inpatient expenditure per death was $15,312 in 1999, $17,423 in 2009, then decreased to $13,388 in 2013.

    Source: JAMA, July 28, 2015

    Like

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