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

Medicare to dodge mandatory cuts in 2017, U.S social insurance program to remain solvent through 2029

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


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

MIG Welders Market Size, Growth, Analysis, Outlook by 2020 - Trends, Opportunities and Forecast to 2025
Author: Partha Ray

Market Study Report presents an extensive report on MIG Welders market that offers qualitative information about prevailing trends and a detailed analysis of the growth trajectory of this industry. It also includes a study of the historical data a...


Vehicle Exhaust Systems Market Size, Latest Trend, Growth by Size, Application and Forecast 2025
Author: Partha Ray

A comprehensive research study on Vehicle Exhaust Systems market added by Market Study Report provides insights into the market size and growth trends of this industry over the forecast timeline. The study evaluates key aspects of Vehicle Exhaust ...


Digital Camera Lenses Market Size Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2025
Author: Partha Ray

Market Study Report has recently added a report on Digital Camera Lenses Market which provides a succinct analysis of the market size, revenue forecast, and the regional landscape of this industry. The report also highlights the major challenges a...