Spending-growth target tied to GDP, reviewed publicly
An independent board recommends the next year's budget against a growth target (e.g., GDP growth plus 0.5 points); departures must be justified publicly.
Independent board with a growth target.
Review ledgerHow this path connects
This path
Spending-growth target tied to GDP, reviewed publicly
Creates or worsens
Concrete changes if chosen
What would actually have to change in law, agencies, payment rules, or systems.
- Create an independent board with a spending-growth target
- Require public justification for departures
Effects
Each effect has its own page: the evidence, the case that it is or isn't a real cost, and whom it affects.
What it fixes
- Chronic underfunding by government budgets
An independent board’s budget recommendations against a growth target balance stability and spending control. Requiring public justification for departures makes budget decisions transparent.
What it creates or worsens
- Requires difficult enforcement
Budget growth targets are often missed, and the independent board’s recommendations can be ignored.
Who's affected
Who gains
- People relying on publicly funded care
- Chronic underfunding by government budgets: Slow public funding growth leads to longer waits.
- Doctors, nurses, and other clinicians
- Chronic underfunding by government budgets: Public budget competition constrains funding for their work.
- Taxpayers and public budgets
- Chronic underfunding by government budgets: An independent board’s budget recommendations against a growth target balance stability and spending control. Requiring public justification for departures makes budget decisions transparent.
Who loses
- Taxpayers and public budgets
- Chronic underfunding by government budgets: Restrained health funding limits public spending in the short run.
Where it has been tried
- Massachusetts: Health Policy Commission sets a cost-growth benchmark.
- Maryland: Hospital spending growth tied to state economic growth.Sources: CMS Innovation Center / RTI (2023)