Medicare May Be Better Off Despite Cuts, Claims Actuary

By Sarah Mamula - Talk Radio News Service

Although the recently passed health care reform law made $485 billion in cuts to the Medicare program, the social-security safety net may last longer than some have expected.

“We have a far better financial outlook for Medicare than we did a year ago, and that’s a direct result of the patient protection and affordable care act” said Richard Foster, chief actuary of the Centers for Medicare and Medicaid services, during a panel discussion at the American Enterprise Institute Friday in Washington, D.C.

Foster said that due to improvements in the healthcare system, the trust fund for Medicare hospitals is projected to run out in 2029 contrasting last year’s 2017 projection.

He stressed, however, that projections are unreliable. The success of the Affordable Care Act will depend on how it is implemented. 

“Nobody knows exactly how these things will work,” said Foster.

As Chief Actuary, Foster works to “provide objective technical information on behalf of policy makers” on the annual Medicare Trustees Report.