Expert says Medicaid, Medicare reform is critical and can save $2.1 trillion

Published On Sep 24, 2024, 6:00 AM

Federal spending on health care programs like Medicare and Medicaid is rising significantly, projected to consume 40% of federal non-interest spending. The Paragon Health Institute has proposed 12 reforms to address inefficiencies in these programs, estimating $2.1 trillion in savings over a decade. Key reform suggestions include eliminating the 50% floor on the federal medical assistance percentage for certain Medicaid services, enforcing site neutrality in Medicare reimbursements, and transitioning to a different inflation measure for health programs. The expiration of enhanced subsidies under the Affordable Care Act by the end of 2025 is also expected to be debated.