Over the next 10 years, our proposals would result in approximately $560 billion in deficit reduction. Our Medicare reforms would achieve roughly $300 billion in net savings within that time frame, and over second decade (2024-2033), our proposals would result in another almost $1 trillion in budgetary savings to the Medicare program. These savings estimates are net of the cost of fixing the dysfunctional Sustainable Growth Rate (SGR) physician payment formula.
Broadly, we propose the following:
- Preserve the guaranteed health coverage promised in traditional Medicare while adding more choices and protections for beneficiaries.
- Strengthen and modernize the traditional Medicare benefit.
- Reform the tax treatment of health insurance to limit the tax-favored treatment of overly expensive insurance products.
- Empower patients by promoting quality measures that are meaningful to consumers, families and businesses.
- Offer incentives to states to promote policies that will support better organized, value-driven health-care delivery and payment system, such as supporting medical liability reform and strengthening our primary-care workforce.
- Advance the nation’s understanding of potential cost savings from prevention programs, through support for research and innovation on effective strategies to address costly chronic conditions.