‘Dramatic’ new cost-cutting measures are on the way to the Medicare program
Health care experts are predicting a dramatic change in the way Medicare is paying for its doctors and hospitals in coming years, as the federal government faces new budget constraints and a slowdown in its expansion of the program.
The Centers for Medicare and Medicaid Services says the costs of doctor visits will be reduced by $1.5 billion in 2019, with an additional $1 billion cut for hospitals.
The government is also trimming $1 trillion in medical device spending, and by 2023, it plans to save $8 billion in medical claims.
The health care experts say the change is being driven largely by cost savings that will not be realized until 2025.
“These are not new measures.
We’ve seen them before.
They are not a dramatic shift, they are not dramatic.
These are changes in the cost of care, and they are being made in response to the pressures of an aging population,” said Thomas Hoenig, a health policy professor at the University of California, San Francisco.”
The health system is doing well, the economy is doing very well, and we have a lot of people with chronic illnesses,” he said.”
But the people who are being most affected are the younger people and those with the highest incomes.”
Health care experts have been warning for years that the Medicare payment system is becoming increasingly complex and will become more costly as more Americans age.
The Medicare program, for example, now covers more than 1.3 million Medicare beneficiaries.
It provides Medicare payments to doctors, hospitals, nursing homes and drug manufacturers, with the rest going to Medicare Advantage plans, which are managed by the federal Department of Health and Human Services.
The program pays doctors $3,200 a visit, up from $2,000 last year.
But that’s not enough to cover the costs for the doctors and the hospitals, especially as Medicare is expanding the number of doctors who qualify for the Medicare Advantage program.
A growing number of people are receiving payments for less time than they otherwise would, according to a study published in the Journal of the American Medical Association last year by Harvard Medical School researchers.
The average Medicare beneficiary who received an outpatient appointment in 2019 earned an average of $13,700, down $7,200 from a year earlier.
The decline in spending is driven by a drop in the average Medicare payment for doctors, who are paying less because of new cost containment measures.
The new payment caps have caused doctors to reduce their total costs by nearly $4,000 in 2019 alone, a $2 billion decrease from the previous year, according the study.
And while doctors are saving money by reducing the number and length of visits, hospitals are losing money by cutting staff, which has hurt the bottom line.
Hoenig said the $1,600 a visit reduction is not the same as a cut in the price that doctors are paying Medicare, and that it’s not as if Medicare is suddenly giving doctors more money.
But the reduction in spending would be the equivalent of cutting doctors by $2.5 million in 2020, he said, compared to the $4.7 million cut that hospitals would get in 2020 under the new plan.
The impact on doctors is especially pronounced in rural areas, where hospitals are expected to be particularly under-resourced.
“There are a lot more rural hospitals than there are urban hospitals, and there are many fewer rural hospitals,” Hoenigs said.
A lot of rural hospitals are in poor health.
And rural areas are not very healthy.
“Hoenigs called the current plan a “historic opportunity to bring Medicare to those who are most in need.
“But he said it’s also the latest example of the government overspending, and said it could have a ripple effect on the overall health care system.”
It’s going to have a profound impact on the health care of millions of Americans,” Hennigs said, and it’s “probably going to be one of the most significant decisions we’re going to make in the next decade or so.
“Health insurance experts are already warning that the government may have to spend more on new Medicare Advantage enrollment and other cost-saving measures in order to keep pace with growing demand.
The Kaiser Family Foundation said the government will have to reduce spending by more than $400 billion over 10 years to meet Medicare’s spending caps.
But in an interview last month with CBS News, a senior official at the Medicare Department said the federal budget would remain balanced, with savings of $1 for every $1 of spending increases.
And that’s because, the official said, the government is using existing savings to pay for more spending.
But that’s only part of the story.
As part of its cost-containment plan, the federal agency also has proposed to increase payments to hospitals for services like surgery and drugs by $3.5 trillion over 10 to 20 years.
And it has also proposed a $10 billion increase to the cost-sharing subsidy for Medicare Advantage patients who qualify,