Proving Innovation in Medicare

In the near future a main cause for deficits in the US will be from Medicare. It is projected that by the year 2035 payments for Medicare will increase by $1 trillion. "But Medicare today doesn’t pay for good outcomes. It pays for any treatment that it deems reasonable and effective. Obviously, the medical industry — drug makers, device makers, hospitals and, depending how they’re paid, doctors — has an incentive to promote the most lucrative treatment. So too many people end up persuading themselves that the most lucrative one is the best one." It is being proposed that only a portion of peoples medical bills would be covered. Some people are afraid that spending money on things that are not beneficial or helping patients is a wast of money. They propose using the money to increase medical research or increase incomes.