Preserving Medicare for Future Generations: Market-Based Approaches to Reform

Reforming the "800-Pound Gorilla of American Health Care"

These Robert Wood Johnson Foundation-supported reports from the American Enterprise Institute highlight market-based solutions to Medicare’s sustainability crisis and the inherent inefficiencies of the current system.

The nonpartisan Congressional Budget Office (CBO) projects the cost of providing benefits to Medicare enrollees will increase at an annual growth rate of 7 percent, reaching at least $1 trillion in fiscal year 2022.

America’s fee-for-service Medicare program represents the third-largest category of federal spending and has been under scrutiny for decades for spending more on health care benefits for enrollees than taxes can generate to pay for them. The CBO estimates that over the next 10 years, the number of Medicare enrollees will increase by one-third—approaching 67 million Americans.