Tomas Philipson: Entitlement Reform: Will Cutting Medicare Raise Unfunded Liabilities In The Future?

Opinions expressed by Forbes Contributors are their own.

Numerous public and private healthcare reforms have tried to reduce growing costs, but these efforts do not necessarily account for the underlying forces that drive spending increases over time. Medical innovation is a principle driver of spending growth and the rate of innovation is, in turn, determined by the profits innovators are able to earn in the future. As a result, changes in public programs designed to reduce budgetary pressures may inadvertently drive up future spending, and ultimately increase the size of unfunded liabilities in later years.

more iot news