CBO Director Elmendorf Describes Difficulties in Reducing Health Care Costs

Congressional Budget Office Director Doug Elmendorf described some challenges in reducing health care cost under current health care reform law and Congressman Paul Ryan’s budget plan, in his speech at the School of Public Policy Saul I. Stern Professorship on April 13.   Elmendorf talked directly about rising health care costs, possible solutions, and the outlook for the current health reform law and Congressman Paul Ryan's budget proposal. Elmendorf presented many of the solutions as “painful,” but said that some combination of these options will be necessary.  With the costs of each Medicare beneficiary rising 1.5 percent faster than GDP per person and a rapidly aging population, federal health care spending is predicted to rise from 7% of GDP to 12% of GDP by 2030.