On April 22, the US Department of Health and Human Services’ Center for Medicare and Medicaid Services (CMS) released an actuarial analysis of the newly-enacted health care reform package. According to the report, the law will achieve the goal of expanding health insurance by adding 34 million to the coverage rolls, it also will fail to control costs. CMS found that, rather than lowering spending, the changes will raise projected spending by about 1% over ten years. 

 

Providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and, absent legislative intervention, might end their participation in the program.

 

Additionally, funding for high risk pools to cover those with pre-existing conditions may be fully expended within the first 1 to 3 calendar years of operation. 

 

To read the complete memorandum, please visit: http://republicans.waysandmeans.house.gov/UploadedFiles/OACT_Memorandum_on_Financial_Impact_of_PPACA_as_Enacted.pdf