Recently, House Republicans announced plans to make structural changes to Medicare that could save hundreds of billions of dollars in the medium term and potentially much more in the extended future. Though many details of the proposal remain unclear, the core concept deserves applause from taxpayers. Strengthening means-testing provisions in certain components of Medicare, as well as introducing additional market mechanisms, are wise moves that would significantly improve the program’s financial stability and reduce its long-term liabilities.
According to Douglas Holtz-Eakin, a former director of the Congressional Budget Office, such reforms could save roughly $230 billion from 2026 to 2035. These savings would accumulate and grow over time, which would help to stabilize the structurally unsound program and reduce the likelihood of tax increases in the future.
As we await further details about the plan, including specifics on short-term offsets and a more authoritative estimate of long-term savings, NTU commends House Republicans for taking an important step toward substantive entitlement reform and looks forward to advocating on behalf of taxpayers during the policy debate ahead.