Policy proposal outlining Medicare & Medicaid restructuring options

Restructure Medicare & Medicaid: Policy Option #5 Consider / Implement CBO’s 26 policy options that could reduce annual budget deficit by up to 38% over the next 10 years KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 323 Restructure Medicare & Medicaid: CBO Policy Options— Regulate Private Health Insurance Market; Modify Tax Code; Modify Insurance Eligibility; Improve Efficiency Policy Options Gov. Future Deficit yp Reduction (%)' Require large employers to either pay government for providing insurance or offer employees basic insurance coverage Replace the income tax and payroll tax exclusion with a refundable credit Replace the income tax exclusion for employment-based health insurance with a deduction Reduce the tax exclusion for employment-based health insurance and the health insurance deduction for self-employed individuals Raise the age of eligibility for Medicare to 67 Convert Medicare and Medicaid “Disproportionate Share Hospital Payments” into a block grant Consolidate Medicare and Federal Medicaid payments for graduate medical education costs at teaching hospitals; set consolidated payment equal to: * Adjusted IME? payments using a 2.2% adjustment factor + DGME* and Medicaid GME? funding inflated by the CPI-U5 minus 1 percentage point * 90% total mandatory GME? funding inflated by the CPI-U minus 1 percentage point Note: 1) As % of Cumulative Total Government Deficit from 2010 to 2019 2) Graduate Medical Education 3) Indirect Medical P Education 4) Direct Graduate Medical Education 5) Consumer price index for all urban consumers Source: CBO www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 324 HOUSE_OVERSIGHT_021003