Foundation

Slowing the Growth of Medicare

by Demian Brady / /

In the debate, Governor John Kasich promoted his plan to slow the growth of Medicare spending. Under the Congressional Budget Office's latest budget data, the federal government spent $639 billion on Medicare in FY 2015. By 2025, expenditures are projected to grow by 7 percent per year, and will reach $1.22 trillion.
 
Kasich's plan would slow the growth starting in FY 2019. Through FY 2025, outlays would increase by 6 percent per year, reaching $1.06 trillion. His website provides only the following details of how the slow down would be achieved: "Increasing care coordination through Medicare Advantage, as well as other changes like reforming payment practices to increase value and quality."
 
 
If the reforms are implemented and maintained -- as we just saw yet again with the Bipartisan Budget Act, lawmakers do not long abide by budget restraints -- spending would be reduced by $101 billion through FY 2021, and an additional $427 billion through 2025. Compared to CBO's baseline, outlays would be 4 percent lower over the first several years, and 13 percent lower in 2025.

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