Walking the Tightrope on Medicare Reform

摘要

The most striking feature of the current debate over Medicare reform is the disagreement about even the basic goals of reform. Medicare is a major fiscal responsibility and has increased in cost far more rapidly than the average rate of growth of the economy. Medicare is currently 2.5 percent of GDP ($5,500 per beneficiary) and is expected to more than double in the next half century, even under very conservative assumptions. Some people, therefore, argue that the primary goal of Medicare reform is to slow the growth rate of the program. But Medicare also has very limited benefits. It does not cover outpatient prescription drugs or a significant part of long-term care expenses. Lack of complete coverage may have important effects on the health of the elderly. Others, therefore, argue that Medicare reform should concentrate primarily on enhancing the program's generosity.