On Tuesday, the Congressional Budget Office (CBO) released their budget outlook for the next ten years called "The Budget and Economic Outlook: Fiscal Years 2013 to 2023." This report seeks to predict future federal budgets including projected revenues, spending, deficits, and debt. The report also details projected spending on government programs such as Medicare.
One thing that caught our eye was the CBO's estimates for future spending on the Medicare prescription drug program, Part D, over the next ten years. First, they note that Part D spending is projected to cost $108.6 billion (8.9%) less between 2012 and 2022 compared to the March 2012 baseline. Second, they note that Part D has cost significantly less than originally estimated:
Medicare Part D works. It has proven to keep older Americans healthier while it is cost-efficient for the government. Research shows that beneficiaries of Medicare Part D are highly satisfied with the program. As Congress considers possible reforms to Medicare, we want to ensure they know Part D is costing less than estimated and spending projections continue to decrease.