A lot more about Chief executive officers [were] claiming, ‘Goddammit, it offers to avoid!

Because of the 1987, this new PPS is actually fully phased inside the, and you can Congress first started using its policy levers to recuperate huge coupons out of Medicare and apply these to shortage protection. The new legislative mechanism is the latest annual finances reconciliation processes. Robert Reischauer, movie director of your own Congressional Funds Office (CBO) away from 1989 so you can 1995, informed me the PPS is viewed and you can used by Congress:

Medicare try the bucks cow! … Congress could get paid for deficit avoidance versus really imposing a good compromise into the social… . In order to the brand new the total amount that protection in fact triggered a true reduction in Medicare services, it will be tough to trace back into brand new Medicare program or even to political ;58)

Aggregate Medicare medical commission-to-pricing percentages fell on a yearly basis away from 1987 so you’re able to 1992 since the hospitals did not restrain will cost you as fast as money were modified (Guterman, Ashby, and you can Greene 1996).
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