Medicare to dodge mandatory cuts in 2017, U.S social insurance program to remain solvent through 2029
Date: 2017-07-14   Author: Dhananjay Punekar  Category: #industry

The latest buzz on the healthcare insurance grapevine is the termination of monetary cuts in the hospital care funding for the geriatric & disabled population in the U.S. As per a report released by reliable sources, this decision will remain intact & unchanged until the year 2029. In 2016, it was forecast that the hospital care program will be extended only till 2028 and an Independent Payment Advisory Board (IPAB) would be formed by the U.S. authorities to keep an official check on the expenditure.

Healthcare industry players have apparently been very appreciative of the non-compilation of the advisory board, which was originally supposed to come into existence in the year 2017 as per the legal provisions of the Affordable Care Act. The IPAB formation could have resulted in the reduction of hospital care’s pharmaceutical bills, which could have prompted the U.S. authorities to reduce the costs of various drugs. Some of the analysts believe that the U.S. government may completely put away with the idea of the Independent Payment Advisory Board in the future, thereby eliminating the risk once and for all.

An alternative for this, however, has already been considered. Accordingly, a health & human services department or a 15-member panel is likely to be created. This panel would suggest the cost-reducing policies to the U.S. Congress, which could either implement the policies or enact a regulation to achieve cost-savings. In the event that the Congress fails to execute the regulation, the panel’s suggestions are liable to be passed through laws.  

Market analysts are of the opinion that the IPAB legislation has been collectively repudiated by all the parties in the U.S. Congress and a short version of the regulatory process to prevent the implementation of the legislation is under consideration. In July 2016, it was forecast that if IPAB came into existence in 2017, it would reduce nearly 0.2%, or about USD 1.3 billion funding of the hospital care program meant to cover the medical care costs of the elderly as well as the disabled population.

But, the U.S. authorities could cut the funding of elderly & disability insurance (Medicare) by 2034, on the similar lines as predicted in 2016 by the trustees of the combined social security trust in the U.S. The reason behind this is apparently the decrease in the number of disability claims and lesser payouts.

For the record, Medicare‘s spending rose up to USD 678.7 billion in 2016 from USD 647.6 billion in 2015.



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

CATL builds factory for supplying batteries to German automakers
Author: Ojaswita Kutepatil

Contemporary Amperex Technology Ltd (CATL) a Chinese battery company has reportedly chosen a site for its battery manufacturing setup in eastern Germany. As per sources, the company aims to meet the battery demand of m...


Wind Tre hands over a $700mn equipment supply contract to Ericsson
Author: Pankaj Singh

Swedish telecommunications equipment manufacturer, Ericsson AB has apparently won a contract worth EUR 600 million (USD 700 million) to supply wireless equipment to Wind Tre. The company will also be responsible for in...


LabCorp & Philips to tie up for advancing the use of digital pathology
Author: Pankaj Singh

LabCorp, a prominent life sciences company and Royal Philips, a formidable name in health technology, have announced a partnership which is aimed at enhancing digital pathology. As a part of the collaboration, the Phil...