July 31, 2014

Trustees Report: Longer Medicare Solvency

The Medicare Trustees issued a report on July 28, which projected that the trust fund that finances Medicare's hospital insurance coverage will remain solvent until 2030, four years beyond what was projected in last year's report. Due in part to recent cost controls resulting from the Patient Protection and Affordable Care Act, per capita spending is projected to continue to grow slower than the overall economy for the next several years. Marilyn Tavenner, administrator of the Centers for Medicare & Medicaid Services (CMS) stated, "we have made major progress in improving patient safety, decreasing hospital readmissions, and establishing new payment models such as accountable care organizations aimed at reducing costs and improving quality. These reforms slow the rise in health care spending while improving the quality of care for beneficiaries."