Reform extends the life of Medicare, according to CMS

August 6, 2010

Donald Berwick, recently appointed Medicare head, announced this week that the most recent evaluation of the effect of the reform legislation on Medicare shows “the financial outlook for Medicare is substantially improved.” Lots of folks weighed in on the announcement, and here’s a quick roundup of stories:

New York Times: Law Will Extend Medicare Fund, Report Says
Washington Post: Medicare funds to last 12 years longer than earlier forecast, report says
WSJ: Bullish Medicare Projection Doubted
Kaiser Health News: Will Health Savings Trickle From Your Paycheck To Social Security?

At Extend Health we tend to be bullish on the potential of reform to exert downward pressure on health care costs in this country. Our experience running an insurance exchange tells us that when you give consumers the chance to comparison shop, they make rational decisions and purchase coverage that provides the best value in terms of benefits for their health care dollar. This tends to have a restraining effect on insurance premiums, which in turn pushes carriers to work with their provider networks to keep costs in line.

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