Medicaid spending is “unsustainable” for both federal and state governments, says Health and Human Services Secretary Mike Leavitt.

Leavitt spoke at the National Association of State Budget Officers fall meeting and urged action be taken to keep Medicaid programs “fiscally sound.” According to a new annual report from the Centers for Medicare & Medicaid Services, Medicaid benefits spending will increase 7.3 percent from 2007 to 2008, reaching $339 billion and will grow at an annual average rate of 7.9 percent over the next 10 years, reaching $674 billion by 2017. That compares to a projected rate of growth of 4.8 percent in the general economy.

“If nothing is done to rein in these costs, access to health care for the nation’s most vulnerable citizens could be threatened,” Sec. Leavitt said.

Results from a survey taken Oct. 7 on the state of the economy and financial markets were released today.
The Association for Insured Retirement Solutions surveyed more than 300 insurance professionals via instant electronic polling during its annual meeting in Philadelphia.

Of those polled, 77 percent of the respondents reported that they planning to continue with their long-term plans, rather than making significant near-term adjustments. Responses were mixed on the opinions of how the financial crisis will impact consumer confidence over the next year.

“A central objective of NAVA’s annual meeting this year was to determine how to address deteriorating consumer confidence,” said Cathy Weatherford, president and CEO of NAVA. “Rather than succumbing to fear and uncertainty, the majority said they plan on maintain their long-term retirement planning strategies rather than reduce their market exposure, indicating the confidence that the markets will eventually rebound.”

NAVA is a nonprofit trade association that provides educational forums, research and conferences aimed at furthering the development and understanding of fixed and variable annuities; income annuities and variable life insurance.

During the annual NAVA meetings, insurance distributors and financial advisor organizations address industry issues and ways to better serve the public. The company hosts an educational website for consumers at www.retireonyourterms.com. By Senior Market Advisor | Published October 7, 2008 From Senior Market Advisor News Desk