The Affordable Care Act has already begun to reduce medical inflation (and resulting budgetary pressures on Medicare)

This, from Andrew Sprung, is great news. Perhaps the White House should tell someone.

O hear Emanuel: the deficit war may already be won

If this trend reported by Maggie Mahar holds up — and if the Supreme Court doesn’t sandbag it — it could be worth more for America’s long-term fiscal health than all the deficit reduction plans put together:

While our elected representatives wrangle over slicing entitlements, virtually no one seems to be paying attention to an eye-popping fact: Medicare reimbursements are no longer accelerating at a break neck-pace. The new numbers should be factored into any discussion about healthcare spending: From 2000 through 2009, Medicare’s outlays climbed by an average of 9.7 percent a year. By contrast, since the beginning of 2010, Medicare spending has been rising by less than 4 percent a year. On this, both Standard Poor’s Index Committee and the Congressional Budget Office (CBO) agree. (S&P tracks healthcare spending with the help of Milliman Inc., an independent actuarial and consulting firm.)…

 Zeke Emanuel, an oncologist and former special adviser for health policy to White House Office of Management and Budget director Peter Orszag…said: “This is not mere chance: this is directly related to the initiation of health care reform.” It is not the result of reform, Emmanuel emphasized. The reform measures that will rein in Medicare inflation have not yet been implemented. But, he explained, providers are “anticipating the Affordable Care Act kicking in.” They can’t wait until the end of 2013: “They have to act today. Everywhere I go,” Emanuel, added, “medical schools and hospitals are asking me, ‘How can we cut our costs by 10 to 15 percent?’

Note: Andrew Sprung’s blog, Xpostfactoid, may be one to bookmark or add to your RSS feed, if you have one. Few posts. Lots of insight.

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About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
This entry was posted in Economics, Government social programs, Healthcare, Politics. Bookmark the permalink.

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