Double Counting

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Estimated savings for Medicare Part A would be substantial enough to extend the program’s solvency to 2029 — under prior law, funds would be exhausted by 2017. However, CMS writes, “In practice, the improved HI financing cannot be simultaneously used to finance other Federal outlays (such as the coverage expansions) and to extend the trust fund…” (p. 9). Savings from Medicare will fund newly created programs — not reduce the program’s future unfunded liabilities.

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