CBO: Most Demonstration Projects Don’t Curb Medicare Costs

After reviewing the outcomes of 10 major Medicare demonstrations, the Congressional Budget Office (CBO) found most produced little or no savings to the federal health insurance program.

The CBO reviewed six disease management and care coordination demos, and four-value based payment demos. The first group of six disease management and care coordination demos comprised 34 programs operated by disease management companies. In nearly each of these demos, spending remained stagnant or increased at the same rate it would have without the program in place.

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Costs For Long Term Care Insurance On The Rise

Just as aging Baby Boomers are realizing they may need long-term care insurance, the marketplace is shrinking, the cost of premiums is soaring, and providers are altering the policies they offer.

Long-term care insurance helps cover expenses that typical health insurance doesn’t, such as nursing homes, in-home care and assisted living.

Insurance companies have been making major adjustments because the claims on long-term health care policies have exceeded their predictions The reason: People are living longer and developing long-term illnesses. Meanwhile, near-record-low interest rates have depressed what the industry earns on the premiums it collects.

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