The 119th, Congress faces critical policy decisions to address rising federal deficits, which are projected by the Congressional Budget Office (CBO) to average $1.9 trillion annually from 2025 to 2034. In December 2024, CBO issued a report of policy options for reducing deficits over the next decade. In health care, key recommendations include:
- Medicaid: Cap federal spending, limit state provider taxes, and lower matching rates.
- Medicare: Raise Part B premiums, adjust cost-sharing rules, restrict Medigap insurance, modify payments to Medicare Advantage plans, reduce payments to teaching hospitals, hospital outpatient departments, and for 340B drugs, and reduce coverage of bad debt.
- Introduce enrollment fees and out-of-pocket minimums for TRICARE for Life.
- Adopt a voucher Plan and slow the growth of federal contributions for federal employees’ health benefits.
Read the full report.
Last Updated on January 12, 2025 by Aimed Alliance
