House Budget Committee, Actuaries Divided Over Future Of Entitlement Programs

While House Budget Committee members agreed during a hearing Wednesday that Medicare and Social Security are unsustainable programs, disagreement reigned on how exactly to prolong the lives of the entitlement programs.

Chief Actuary Stephen Goss supported the immediate enactment of reforms to Social Security, whose funds are projected to dry up in 2036. Foster named gradual payroll tax increases and gradual decrease in benefits as effective economic decisons for Social Security.

Chief Actuary Richard Foster’s projection for Medicare and Medicaid ended in a lack of incentive for providers to continue to provide health care under a program with decreasing provider payments and increasing health care costs. Goss also advocated for cost-reducing medical technology to combat rising health care costs.

Budget Committee Chairman Paul Ryan’s arguments for greater privitization of health insurance was met with criticism by Rep. Earl Blumenauer (D-Ohio), who said that without the Affordable Care Act, “we would be much worse off than we are now.”

Goss remained ambivalent over whether the Affordable Care Act could reduce the difference in costs and revenue on Medicaid, but commended the legistation for its meaningful reforms.

Foster acknowledged, responding to a question by Rep. David Price (R-N.C.), that the President has not met a legislative requirement to provide a recommendation after receiving warnings on Medicare funding.