Medicare’s unfunded obligation is the total amount of money that would have to be set aside today such that the principal and interest would cover the gap between projected revenues (mostly Part B premiums and Part A payroll taxes to be paid over the timeframe under current law) and spending over a given timeframe. By law the timeframe used is 75 years though the Medicare actuaries also give an infinite-horizon estimate because life expectancy consistently increases and other economic factors underlying the estimates change.
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Jump up ^ Carrie Johnson, “Medical Fraud a Growing Problem: Medicare Pays Most Claims Without Review,” The Washington Post, June 13, 2008
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Nursing Home Quality Initiative Medicare Advantage plans that decide to use step therapy must disclose that to beneficiaries and “offer beneficiaries an opportunity to participate in drug management care coordination activities,” including reviews of all medications taken and consultations, CMS said. Beneficiaries can also request exceptions to step therapy requirements.
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Medicaid’s administrative cost for each churn was an estimated $400 to $600 in 2015. Based on the Survey of Income and Program Participation, 28 million enrollees were projected to churn between Medicaid and exchanges each year. See Katherine Swartz and others, “Evaluating State Options for Reducing Medicaid Churning,” Health Affairs 34 (7) (2015): 1180–1187, available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4664196/; Benjamin D. Sommers and Sara Rosenbaum, “Issues In Health Reform: How Changes In Eligibility May Move Millions Back And Forth Between Medicaid And Insurance Exchanges,” Health Affairs 30 (2) (2011): 22–236, available at https://www.healthaffairs.org/doi/abs/10.1377/hlthaff.2010.1000. ↩
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