Health Industry Forum

November 8, 2011

How Will Deficit Reduction Impact the Health Care System?

The attention of Washington policymakers has increasingly focused on reducing the deficit. Over the coming decades the primary source of projected growth in federal spending will come from increased Medicare and Medicaid spending. Accordingly, all of the major deficit reduction proposals released during the past year include significant federal health care spending cuts. Former CBO Director Robert Reischauer began the meeting with a review of the long-term budget outlook and the characteristics of recently introduced deficit reduction proposals. Dr. John Rowe then presented a view of the potential long-run impact of significant deficit reduction on the health insurance industry including their likely future investment in core and ancillary health care businesses.