From Newsweek · · 1m 50s
Medicare costs are going up, and Oz says demographics are why
The CMS administrator says rising Medicare spending is baked in, and the fight is over how fast it climbs.
In brief
The CMS administrator says rising Medicare spending is baked in, and the fight is over how fast it climbs. Medicare spending will rise as boomers age. The question that matters is whether it outruns inflation and lands on retirees as higher premiums and deductibles. Originally reported by Newsweek.
Oz says costs are rising
CMS administrator Mehmet Oz told Newsmax that Americans should expect Medicare costs to climb in the years ahead, driven by the country's aging population.
“The Medicare costs are gonna increase because of the national demographic shift.”
The line he's drawing
Oz says growth that matches inflation is acceptable. Anything faster is the problem. Current consumer price growth runs about 3.4 percent a year.
“I'm willing to tolerate, and I think all of us would, if Medicare increases at the same rate as inflation.”
68 million people affected
More than 68 million Americans are on Medicare, and enrollment keeps expanding as boomers hit retirement age. That means more demand for hospital care and prescription drugs.
Program costs reach your wallet
Medicare does not absorb every increase. Finance expert Michael Ryan says the rest surfaces as premiums, deductibles and out of pocket costs for people on fixed incomes.
“Health care is competing with groceries, housing and everything else.”
The long term math
Medicare is funded by taxes from current workers but pays benefits to retirees. As that ratio shifts, fraud crackdowns and drug price deals only go so far.
“You can't fraud prevention your way out of an aging population that needs more care.”
An affordability problem already
Fewer than half of Americans can regularly afford the care they need, says UT Martin instructor Alex Beene, and premiums are eating a growing share of seniors' income.
“Health care inflationary pressures have become a retirement and economic-security issue.”
Not just demographics
Kevin Thompson of 9i Capital Group argues the for-profit system and the uninsured also drive costs, with the burden passed along to people who do have coverage.
“Until we can get everyone covered, higher costs will continue to be passed on to the insured.”
What comes next
Beneficiaries learn more about 2027 costs in the coming months, and Medicare heads into the 2026 midterms as a live political fight over how to keep it solvent.
“It's whether we can make the health care we're paying more for actually worth more.”
The essence
Medicare spending will rise as boomers age. The question that matters is whether it outruns inflation and lands on retirees as higher premiums and deductibles.
