FOR IMMEDIATE RELEASE, Tuesday, February 26, 2008
CONTACT: Yoni Cohen, (202) 225-3202

WASHINGTON, D.C. – Representative Pete Stark (D-CA), Chairman of the Ways and Means Health Subcommittee, commented today on the Centers for Medicare and Medicaid Services projections of National Health Expenditures.

“Today’s projections on health expenditures are nothing new. While sobering, we should refrain from exaggerations that the sky is falling. If anything, these projections provide a clarion call for the need for major health reform.

“Our current system is fractured and inefficient. We spend too much money on marketing and administration, and to fatten the bottom lines of the myriad of corporate interests in the health care sector. Despite this spending, 47 million Americans still are without health coverage and many find their coverage inadequate. We need meaningful health reform to slow the growth in health care costs and ensure coverage for all Americans.

“Growth in health care costs is not unique to public or private payers, it faces our entire system. However, in Medicare, we have a clear path to address rising costs. Last year, the House passed legislation that would protect the future of Medicare by reining in overpayments to health insurance companies. Corporate welfare for insurance companies costs Medicare billions and drains years from Medicare’s solvency. In order to ensure the fiscal strength of Medicare we need to work together to reduce or eliminate overpayments to private health plans, as was done in last year’s Children’s Health and Medicare Protection (CHAMP) Act.”

Background: The Centers for Medicare and Medicaid Services Office of the Actuary published online in Health Affairs its projections of National Health Expenditures through 2017. Growth in health spending growth is projected to be 6.7 percent in 2007, similar to its rate in 2006. Average annual growth over the projection period is expected to be 6.7 percent. Additional information can be found at: http://www.cms.hhs.gov/NationalHealthExpendData/downloads/proj2007.pdf