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Restructure Medicare & Medicaid: CBO’s Policy Options — Reduce Medicare / Medicaid Payments; Modify Premium and Cost-Sharing in Federal Health Programs Polley Options Gov. Future Deficit iP Reduction (%)" Reduce Medicare's payment rates across the board in high-spending areas 0.7% Remove or reduce the floor on Federal matching rates for Medicaid services * Remove the floor on the federal medical assistance percentage 3.3% * Reduce the floor on the federal medical assistance percentage to 45% 1.9% Reduce the taxes that states are allowed to levy on Medicaid providers 0.7% Increase the basic premium for Medicare Part B to 35% of the program's costs 3.2% Combine changes to Medicare's cost sharing with restrictions on Medigap policies? 1.1% Require a copayment for home health episodes covered by Medicare 0.7% Restrict Medigap coverage of Medicare's cost sharing 0.6% Introduce minimum out-of-pocket requirements under TRICARE for life 0.6% Note: 1) As % of Total Cumulative Government Deficit from 2010 to 2019 2) individual insurance policies designed to cover most or all of Medicare’s cost-sharing requirements. Source: CBO www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 325 Restructure Medicare & Medicaid: Policy Option #6 Consider / Implement National Commission on Fiscal Responsibility and Reform’s medium- and long-term policy options KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 326 HOUSE_OVERSIGHT_021004