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Thursday, Jun 11 2009Medicare Solvency Predictions Inaccurate, Panel SaysBecause of the increasing use of medical technology, health care costs will grow faster than what the government has
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stanley austria al outlook, according to the Technical Review Panel on the Medicare Trustees Reports, the New York Times reports. HHS Secretary and Medicare trustee Donna Shalala created the panel, made up of three economists and three actuaries, to evaluate assumptions, estimates and forecasts made each year by the six Medicare trustees, who advise Congress on how to improve Medicare s fin
stanley germany ancial condition. In April, the trustees said that the hospital insurance trust fund, which pays Medicare beneficiaries hospital costs, would be solvent until 2025. But the advisory panel s report indicates that the fund will run out of money by 2021. The panel s chair, Dale Yamamoto, an employee benefits expert for Hewitt Associates, said, We think health care costs will grow somewhat faster than the trustees now assume. That means that the current long term projections of Medicare spending over the next 75 years are low. Medicare s annual cost in fiscal 2000 was $218 billion. That figure is expected to double by 2010. While the trustees have assumed that average costs for each Medicare beneficiary after 2025 would grow at the same rate as the gross domestic product, the panel said the costs per beneficiary will grow about 1 percentage point mo
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