After weeks of contentious debate, lawmakers have finally reached an agreement to raise the nation’s borrowing limit. The plan includes cuts to lower the deficit by about $1 trillion over 10 years and creation of a committee to determine future cuts. The plan did not address the Sustainable Growth Rate formula and the committee could potentially reduce physician pay under Medicare and Medicaid. Congress is expected to vote on the plan today or tomorrow.
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While the details of further cuts remains unclear, federal economists released their predictions on the growth of U.S. health care spending. Not surprisingly, health spending growth was low last year, due to the impact of the recession. And even in 2014, when many Affordable Care Act provisions kick in, the rate of spending growth is predicted to be just 2% over the average annual growth rate for the rest of the decade.
In related news, a repeal to the unpopular Independent Payment Advisory board has gained bipartisan support. For details on that and more, listen to this week’s Policy & Practice podcast.