Publication Date: July 2007
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Robert Greenstein; James Horney
Research Area: Health
Keywords: Economic projections; Health care costs; Health insurance; Income diversity
The 45-percent threshold is an ideologically laden measure that is based on a misleading measure of Medicareâ€™s financial health; it is designed to take certain options for improving Medicare financing off the table. As a result, the 45-percent threshold could make it harder to address the Medicareâ€™s financing problems in an equitable manner, rather than easier. Repealing the 45-percent threshold provision would actually be a positive step; repeal would remove a misguided measure that makes it more difficult to have an informed debate on Medicareâ€™s financing problems and that establishes the wrong goal to aim for in restoring Medicareâ€™s financial health. Removal of the 45-percent threshold consequently should increase the potential for Medicare reform legislation that is effective and equitable to be considered in the future.