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February 7, 2016

$1.1 Trillion Axed From Long-Term Estimates on Federal Health Care Spending

In July, two pivotal scorekeepers on federal spending issued annual reports on the long-term outlook for federal health care spending.This week the trustees of the Medicare Trust Funds published the annual trust fund report and indicated that a recent moderation health care spending growth has extended the solvency of the Medicare hospital inpatient trust fund.

Earlier in July, the Congressional Budget Office also issued its Long Term Budget Outlook, including revisions to health care spending estimates, which also noted the long-term budgetary impact of slower health care spending growth.

CQ HealthBeat’s John Reichard noted on Wednesday that a separate CBO blog posting parsed all the reports into one striking statistic — that over the next 10 years, federal health care spending will be $1.1 trillion lower than previous estimates.

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  1. Rosita Rubio

    Dec. 7, 2014
    3:37 p.m.

    No wonder costs are going down, very few doctors will take Medicare patients so there has been a decrease in payments to doctors. That’s like saying the government will buy you a new car and will pay all the costs as long as the car doesn’t cost over $5,000. Try to find a new car dealer that will sell you a new car for $5,000. The government will then say that their new car program has been a success and the costs of the agency that arranges for new cars has gone down. The government will keep the 100,000 bureaucrats that run the program incase the demand increases.

  2. Firozal A Mulla

    Dec. 8, 2014
    8:49 a.m.

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    Dec. 8, 2014
    8:55 a.m.

    London keeps packing them in. The city’s population has grown 15 percent since 2000, and housing costs have risen 30 percent since the Great Recession. While the growth in residential property values has slowed as new high-density towers spring up across the city, the cost of office space continues to rise. It’s already among the most expensive on the planet, and prices are likely to keep rising through 2016, according to Credit Suisse. The primary reason: a lack of new supply. Few new office buildings will open in 2015, higher land values make new developments rare and some older buildings are being converted to housing. And then there’s demand: employment in London is forecast to grow at 1.9 percent annually over the next two years, higher than the 1.3 percent average forecast for the U.K. as a whole. –

  4. Firozal A Mulla

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    9:06 a.m.

    Chinese officials have their work cut out for them. Not only are they trying to transform their export-led economy into one driven by domestic consumption and private investment, they’re trying to do so at a time when the global economy is sluggish. That’s proving to be challenging, especially since the performance of China’s own economy has been subpar. It’s also tricky because the country’s desire to move away from growth driven by public investment means it would be counterproductive to prop up the economy with the kind of heavy-handed fiscal and monetary policy that worked rather well during the global financial crisis in 2009. As a result, China had implemented only moderate stimulus measures this year, such as investment in selected public works projects and new credit lines to certain financial institutions. Broader policy actions such as rate cuts had been off the table. Until last week. On November 21, China’s central bank revealed the extent of its concern about the slowing economy when it unexpectedly cut its benchmark interest rate for the first time since July 2012, lowering it 40 basis points to 5.6 percent, in addition to cutting the 1-year deposit rate by 25 basis points to 2.75 percent. The move represented a clear shift in policy, say Credit Suisse analysts Dong Tao and Weishen Deng, from “neutral with a slight easing bias” to full-out “easing.” That shift comes on the heels of news that China’s GDP grew 7.3 percent in the third quarter, the lowest level since 2009, and the fact that the country is on course to miss its 7.5 percent growth target for the year. More recent October data shows persistent weakness. Industrial production rose a lower-than-expected 7.7 percent in October, down from 8 percent the previous month, while retail sales slowed to 11.5 percent from 11.6 percent. And bank credit increased by 548 billion Yuan during the month, well short of a Bloomberg consensus of 626 billion Yuan. “These weak credit data support our argument that risk appetite is low in the banking sector, despite the central bank’s ongoing efforts to provide liquidity,” Tao wrote in a November 24 note. –

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