Increased use of comparative effectiveness research in funding decisions for Medicare and Medicaid programs will ensure technologic advancements demonstrate cost containment strategies and improved quality of health care services when new medical innovation is proposed for use in the United States’ health care system, thereby reducing overall health care expenditures.
President Obama’s February 14th budget proposal for fiscal year 2012 would freeze or reduce funding for many federal programs as part of a strategy to begin reducing the federal deficit. The nation’s major social insurance programs – Social Security and Medicare – appear to have been exempt from such changes, at least for the moment.
The release of the President’s budget proposal is, of course, only the beginning of what will be a difficult and unpredictable negotiating process with a divided and contentious Congress. In the course of negotiations the pledges made this week by the President could be markedly altered, with potentially long-term consequences for the people who rely on these social insurance programs.
Social Security
Under the heading “Secure Social Security,” the President’s budget message states:
Each summer, NASI’s Somers Aging and Long-Term Care Research Internship program selects 5-7 graduate students to spend 12 weeks receiving high-quality training in policy research skills on challenging issues facing the diverse aging population of the United States.
Read More…The Co-chairs of the President’s Commission presented a number of policy proposals aimed primarily at reducing the growth spending on Medicare and Medicaid. Given the size of the two programs, some of these changes may impact health care spending patterns in the private economy, but many will simply shift costs to other payers. Few, if any, proposals would address the underlying growing demand for services triggered by an aging population and a long term care system that relies on private savings.
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