CBO came out with a report
http://www.cbo.gov/sites/default/files/cbofiles/attachments/45010-Outlook2014.pdf
Which had some insights on medium term medicare costs among other things.
It projected CPI to be around 2% 2014-2017 and 2.4% 2018-2024.
It points out
"Under current law, spending for Medicare is expected
to grow by an average of 6 percent per year over the
next 10 years. That growth can be attributed in roughly
equal parts to increasing caseloads and rising costs per
beneficiary. CBO projects that Medicare caseloads will
expand at an average rate of 3 percent per year, as growing
numbers of baby boomers become eligible for benefits
at age 65. "
"CBO projects that spending per beneficiary will also
grow at an average rate of 3 percent per year over the
coming decade"
"Offsetting receipts for Medicare in 2013
reached $93 billion, constituting a little more than
30 percent of all offsetting receipts. Over the coming
years, those receipts will rise at about the same rate as
spending for Medicare"
Which implies the Medicare premiums should rise 3% a year since spending per beneficiary is also around 3%.
This seems to contradict what Kaiser came out with recently in
Raising Medicare Premiums for Higher-Income Beneficiaries: Assessing the Implications – Tables | The Henry J. Kaiser Family Foundation
where it seems to imply that Medicare premiums will rise 5.4% during the 2015-2022 period.
http://www.cbo.gov/sites/default/files/cbofiles/attachments/45010-Outlook2014.pdf
Which had some insights on medium term medicare costs among other things.
It projected CPI to be around 2% 2014-2017 and 2.4% 2018-2024.
It points out
"Under current law, spending for Medicare is expected
to grow by an average of 6 percent per year over the
next 10 years. That growth can be attributed in roughly
equal parts to increasing caseloads and rising costs per
beneficiary. CBO projects that Medicare caseloads will
expand at an average rate of 3 percent per year, as growing
numbers of baby boomers become eligible for benefits
at age 65. "
"CBO projects that spending per beneficiary will also
grow at an average rate of 3 percent per year over the
coming decade"
"Offsetting receipts for Medicare in 2013
reached $93 billion, constituting a little more than
30 percent of all offsetting receipts. Over the coming
years, those receipts will rise at about the same rate as
spending for Medicare"
Which implies the Medicare premiums should rise 3% a year since spending per beneficiary is also around 3%.
This seems to contradict what Kaiser came out with recently in
Raising Medicare Premiums for Higher-Income Beneficiaries: Assessing the Implications – Tables | The Henry J. Kaiser Family Foundation
where it seems to imply that Medicare premiums will rise 5.4% during the 2015-2022 period.
