May 31, 2011

Medicare Expenditures Under the CMS Alternative Scenario

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This chart by Mercatus Center Senior Research Fellow Veronique de Rugy compares the long-term projections of Medicare costs under the current law (“2011 Trustees Report”) and under an alternative scenario formed by CMS Office of the Actuary which represents a ‘best estimate’ of future Medicare expenditures (“2011 Trustees Report Alternative”).

These projections primarily differ in their assumptions about the plausibility of cutting payment rates – if these cuts do not materialize, Medicare will cost tens of billions more each year than current law projects.

Veronique de Rugy blogs why Medicare will cost more than expected at NRO's The Corner.