This spring, when Congress passed the first real entitlement reform in nearly two decades, Speaker Boehner called it “a big win for the American people.”
Now a new report confirms just how big a win it is for taxpayers and future generations. According to the trustees who oversee Medicare and Social Security, this bipartisan ‘doc fix’ measure will save taxpayers nearly $2.9 trillion over the long term. Ryan Ellis, writing for Forbes, explains how:
“To sum up, the CMS actuarial score of H.R. 2 projected that $387 billion would be reduced from Medicare’s Part A (Hospital Insurance) unfunded liability, and $2.5 trillion would be reduced from Medicare’s Part B (doctor visits) unfunded liability. Put those together, and you have a reduction in the present value of Medicare’s unfunded liabilities of nearly $3 trillion.”
This report confirms three things:
1) Real savings. The way things were done before, taxpayers were only getting the illusion of savings. Going forward, as Speaker Boehner wrote in April, “over the long term, the next 20, 30, and 40 years down the road, these reforms will produce hundreds and hundreds of billions in durable savings for taxpayers.” This report confirms those savings and more.
2) Better outlook. With Medicare’s 50th anniversary coming up on Thursday, this report confirms that our reforms will put the program on a sounder financial footing. This echoes similar findings by the Congressional Budget Office, the Medicare actuary and American Action Forum’s Douglas Holtz-Eakin.
3) Good foundation. This shows that we can achieve real – and significant – entitlement reform without raising taxes. More from Ellis:
“For a little more spending over the next decade ($141 billion), Congress cut the unfunded liabilities of Medicare by $3 trillion. That’s a ratio of 20:1. That’s fantastic. And it’s all on the spending cut side of the ledger. … 20:1 is a deal Republicans should not only be proud of, but should seek to repeat again and again. When it comes to structural entitlement reform, this is what winning looks like.”
Putting Medicare on a Sounder Financial Footing
Medicare Actuary Confirms “Doc Fix” Bill’s Long-Term Savings for Taxpayers
Nation’s Editorials Praise House-Passed Medicare Reform
Titanic Entitlement Reform