Medicare
A slowdown in Medicare spending per beneficiary is the result of key changes in Medicare provider payment policy, according to a study in Health Affairs.
According to the study, the rate of excess growth fell from 5.6% during 1975-1983 to 2.1% during 1983-1997 and 0.5% during 1997-2005. Changes that have prompted the slowdown include new prospective payment systems for hospitals and post-acute care providers, and control on aggregate Medicare physician spending.
The study concluded that the slowdown merits the attention of lawmakers and suggested further research into payment-driven savings among private-sector health spending, the effects of one-time policy shifts and the implications of supply-side spending constraints on quality and efficiency in comparison to demand-side approaches such as increased cost sharing (White, Health Affairs, May/June 2008).