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Medicare and other major Federal health programs are crucial pillars of the health care system. Fiscal and demographic challenges threaten the financial sustainability of Medicare, requiring a broad effort to modernize the program. Innovative strategies, including value-based care and alternative payment models, have shown promise in reducing costs and improving the quality of care for patients. Policymakers have other tools to tackle Medicare’s negative financial trajectory as well, such as reforms to Medicare Advantage (MA); adjustments to premiums, cost-sharing, and prescription drug payments; emphasizing primary care and care coordination; and streamlining regulations. To ensure the continued financial viability of the Medicare program, Congress should consider and evaluate these potential reforms.
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