The long-term fiscal condition of the United States has beenlargely misdiagnosed. Despite all the attention paid to demographicchallenges, such as the coming retirement of the baby-boom generation,our country's financial health will in fact be determined primarilyby the growth rate of per capita health care costs. Yet discussionsof Medicare and Medicaid policy as well as broader health carereforms have not seriously addressed the issue of how to slowgrowth in spending. Instead, recent debates have focused onhow much to increase spending for the Medicare prescription-drugbenefit, how to expand coverage for children, and how . . . [Full Text of this Article]
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Dr. Orszag is the director of the Congressional Budget Office (CBO), where Dr. Ellis is a senior analyst. The CBO is a nonpartisan agency that provides budgetary and economic analyses to Congress.
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