What Is Medicare’s Future Amidst Exploding Health Care Costs?

USA Today examined the future of Medicare amidst exploding health care costs and how there could be sweeping changes in Medicare, Social Security and private health insurance.

According to an estimate by the Congressional Budget Office, by 2082, combined spending on Medicare and Medicaid would be 19% of GDP. Today that figure is just 4%. The American Academy of  Actuaries says that Medicare Deficit Elimination over 75 years would need an increase in Medicare payroll tax by 122%, a 51 percent reduction in benefits or a suitable combination of both options.

According to CBO director Peter Orszag, there were long term financial problems with Medicare but cost could be removed from the system without harming health care. Spending could be reduced by changing the way health care providers were paid.

According to Tricia Newman from the Kaiser Family Foundation, there was a wide range of options available. Changes could affect beneficiaries like doctors and hospitals or insurers. Structural changes could affect everyone. There were long term changes imminent but not short term ones.