Some Scary Medicare News in the CBO Report

The Congressional Budget Office (CBO) released its new economic outlook yesterday with some interesting predictions on the launch of the Affordable Care Act’s health insurance marketplaces (exchanges).  But it was some of its Medicare findings that blew my hair back last night:

• CBO concurred with Medicare trustees that the trust fund will run dry by 2024, driven by rapid aging of the population.
  • The number of Medicare beneficiaries enrolled in the program will grow by 36%, or an estimated 18 million people, between 2012 and 2023.
  • The number of Baby Boomers turning 65 is projected to grow from an average of about 7,600 per day in 2011 to more than 11,000 per day in 2029.
• Over the next decade, annual net spending on Medicare will jump 82%, from $508 billion this year to $914 billion in 2023, according to CBO. As a share of the economy it will rise from about 3% of GDP today to 5% by 2037.

Check out this graph

Further proof that if you’re not in Medicare Advantage and Part D, you won’t be in healthcare soon.

Resources

Listen to a discussion focused on the lessons learned from MA and Part D when it comes to product strategy in the Exchanges.

Learn how Gorman Health Group can support your Medicare Advantage and Part D goals